Daily Times

The KSE-100 index received an adrenaline rush past week from the US$6.2 billion package to be received from UAE to Pakistan, following the Crown Prince of Abu Dhabi’s visit to the country.

Further investor confidence was boosted with news flows regarding potential hefty investments by UAE and Saudi Arabia in the Refinery and other sectors of Pakistan.

More impetus came from satisfactory remarks from FATF over Pakistan’s efforts that have been made so far to tackle money laundering.

News updates regarding higher taxes and duties anticipated in the upcoming Mini Budget’ to be announced during this month also remained on the radar during this week.

The KSE100 index increased by 4% WoW to close at 39,049. Positive sentiments were also reflected with increased participation as average daily traded volumes increases by 18% WoW to 139 million shares, while traded value increased by 12% WoW to US$46 million. Major net sellers remained the Banks/DFIs segment with US$3.5 million, broadly concentrated in the power and textile sectors.

On sector-wise performance, market cap of the Oil & Gas Exploration sector expanded by 11% WoW as trade talks and OPEC cuts further increased international oil prices by 9% during the week, taking them up by 21% since recent lows during December-2018.

Other key news during the week were (remittances increased by 10% YoY during 1HFY19, while December-2018 remittances declined by 2% YoY, State Bank of Pakistan’s (SBP) forex reserves fell to US$7.05 billion in the last week, the government appointed new MDs for Sui Northern Gas Pipeline (SNGPL) and Sui Southern Gas (SSGC), World Bank released a report where it expects Pakistan’s FY19 GDP growth to decline to 3.7% and 1HFY19 cement sales limited its decline to 2% YoY as December-2018 sales increased by 4% YoY.

Published in Daily Times, January 13^th 2019.