Karachi, October 06, 2023 (PPI-OT): KSE-100 up 3% WoW

KSE-100 index was up 2.7% WoW this week closing at 47,493, reporting a positive closing for 5 consecutive days. Volumes picked up by 44% WoW to 291mn shares. Foreign investors remained net sellers throughout the week, offloading US$12mn worth of equities. Investor sentiment remained positive over declining international oil prices and appreciating PKR against US$. PIB cut-off rates were reduced by 15bps (3yr-PIBs), while we saw 42bps/5bps cut in 3M/12M T-bill cut offs in auctions held this week. We highlight government reduced domestic petrol prices by Rs8/litre and Rs11/litre for diesel for the current fortnight.

Pak Rupee continued to gain momentum on account of measures taken by the SBP to minimize gap between interbank and open market. Resultantly, Pak Rupee closed at 282.7/US$ gaining 1.8% WoW, taking FYTD gains to 1.2%. International oil prices (Brent) also dropped to US$84.86/bbl, down 12% WoW. Furthermore, SBP FX reserves declined by US$21mn to US$7.6bn. CPI for Sep-2023 came in at 31.4% YoY during the week, over low base effect, while MoM increase came in at 2.0%.