Karachi, December 09, 2022 (PPI-OT): Bearish momentum continues; KSE100 sheds 452 points

KSE100 opened the week on a pessimistic note owing to political uncertainty and delay in talks with IMF. The market witnessed a partial recovery during the mid of the week and closed at 41,698 points, limiting losses to 1.1% WoW. Sectorwise, Pharma (down (5.9%), Cements (down 2.9%) and Oil and Gas Marketing (down 2.3%) remained key underperformers during the week. On the local side, political noise remained elevated following the PTI chairman’s announcement to dissolve the provincial assemblies. Whereas, on the economic front, Finance Ministry reiterated the IMF programme being on track and that negotiations for the ninth review were at an advanced stage.

Despite an inflow of US$500mn from the AIIB, FX reserves held by the State Bank declined to a 4-year low at US$6.7bn owing to debt repayments during the week ended Dec 2, 2022. The country has now planned to seek from Saudi Arabia a US$4.2bn additional package comprising of deposits of US$3bn and an oil facility on deferred payment of US$1.2bn to create a breathing space. Foreign currency inflows through the Roshan Digital Account (RDA) for Nov-2022 clocked in at US$141mn, a 24-month low.