Karachi, December 31, 2021 (PPI-OT): KSE100 closes on a positive note with Mini Budget announcement

The week started on a negative note dropping 205 points from Friday’s close down to 43,913 before recovering throughout the rest of the week. The week closed on a positive note up by 478 points where taxation measures worth Rs350bn proposed by the government were announced in the later part of the week. The measures primarily targeted the pharmaceutical and automobile sector, alongside imports of machinery. Refineries outperformed the KSE-100 (up by 9.4% WoW) following the news of development in the approval of the draft policy.

However, investor participation increased by 1.2% WoW to 218mn shares in terms of volumes, while average daily traded value declined by 3.0% WoW to US$44mn. Foreign investors remained net buyers again, which accumulated to US$8.1mn, while the Banks/DFI segment emerged as key net sellers (US$3.3mn) this week. On the international front the OPEC is set to meet on 4th January 2022 where the organization will take a decision on oil production from here onward. On other news front, the State Bank of Pakistan’s (SBP) foreign exchange reserves remained under pressure squeezing by US$298mn WoW.