Karachi, October 29, 2021 (PPI-OT): KSE100 gains 1.3% WoW amid positive newsflow

With a gain of 606 points during the week, the benchmark KSE100 index closed on an optimistic note at 46,185 levels having climbed 1.3% WoW. Volume traded on the bourse averaged at 202mn shares per day (down 33% WoW), while average traded value declined 37% WoW to US$40mn. The overall sentiment was backed by a number of positive news. Major trigger being the commitment by Saudi Arabia to provide a support package of US$4.2bn to Pakistan out of which US$3bn are to be deposited in State Bank and the rest US$1.2bn are to be used to finance oil derivatives throughout the year. Pak rupee also appreciated to Rs172.3/USD on the last day of the week following this news after dropping to its lowest level at 175 in the interbank market on Tuesday.

Notification of the appointment of DG ISI was another positive development during the week. The Engineering sector posted a green week as companies showed financial results which were higher than street consensus owing to inventory gains coupled with the industry’s ability to pass on the impact of rising raw material prices to end consumer. Cement sector also performed well, after it stayed under pressure for the past several weeks, owing to drop in coal prices due to active measures taken by the Chinese government.