Karachi, January 07, 2022 (PPI-OT): KSE100 up by 1.7% WoW despite rising inflation and import bill

The market gained positive momentum throughout the week, closing the first year of the week positive at 45,346 levels (+1.7% WoW). Investor participation during the week increased by 46% WoW to 318mn in terms of volume while an increase of 32% WoW was witnessed in the average daily traded value. Foreign investors remained net buyers again, which accumulated to US$24.2mn, albeit the interest was concentrated in the Technology sector (US$22.5mn).

Foreign investors interest in the Technology and Communication sector led to the sector closing higher by 2.9% WoW, taking the sector among the outperformers this week. This was followed by Engineering (Steel, +3.1% WoW) and Oil and Gas Marketing (+1.7% WoW) sectors. On the news front, inflation for the month of Dec-2021 clocked in at 12.3% YoY, which is the highest since Feb-2020. Moreover, total cement sales for Dec-2021 were reported 4.2% YoY lower. PBS revealed trade deficit data on Thursday where the deficit widened by 85% YoY during Dec-2021 clocking in at US$4.86bn, where import bill expanded by 52% YoY to US$7.60bn.