Daily Times

The International Monetary Fund (IMF) expressed dissatisfaction with the proposed government budget for the 2022-2023 fiscal year, which caused the Pakistan Stock Exchange (PSX) to commence the week on a sour tone and see a bloodbath. Because of this, the market dropped by 1,135pts from the previous day’s close.

During the course of the week, the value of the Pakistani rupee also fell to an all-time low against the US dollar, reaching about 208, while the State Bank of Pakistan’s foreign exchange reserves fell to $8.99 billion.

Nonetheless, optimism was shown in the market later on, and the KSE-100 index increased its value as a result of rumours about the potential removal of Pakistan from the FATF grey list.

Despite this, a significant number of investors chose not to participate because they were concerned about the resumption of the IMF programme. The continued weakening of the rupee caused investors to become even more pessimistic about the future.

A positive market mood helped the KSE index rise in the green zone as the government implemented steps such as raising petroleum product prices to secure an IMF loan agreement. To meet IMF requirements, thegovernment allowed a phased hike in electricity costs of Rs7 per unit, which piqued investors’ interest even further.

In the wake of China agreeing to roll over $2.3 billion in loans and provide an additional $2,5 billion to $2,8 billion in aid, investors remained upbeat, lifting the index.

A boost to the market’s mood came with the announcement that Pakistan had been removed off the FATF’s “grey list.” Closed above 42,000pts as bulls took over the week’s momentum.

After the massacre, there was an uptick in bullish sentiment on the market as investors anticipated that Pakistan would be removed from the FATF’s grey list. The market ended the week at 42,141pts, an increase of 126pts (0.3pc ) over the previous week’s close. According to the data published by Topline Securities, the KSE-100 index finished the week flat.

E&P (116pts), cement (90pts), original equipment manufacturers (80pts), power generation (56pts), and engineering all made positive contributions to the total (51pts).

On the other hand, sectors such as commercial banks (263pts), the chemical industry (34pts), and technology were among those who contributed negatively (33pts).

In the meantime, companies such as Hubco (51pts), PSO (50pts), Pakistan Oilfields (36pts), Pakistan Petroleum (32pts), and OGDC contributed positively to the stock price (31pts).

On the other hand, UBL (75pts), Meezan Bank (71pts), Bank AL Habib (46pts), MCB (44pts), and Standard Chartered Bank (44pts) all contributed to the loss (34pts).

During the course of the week, international sales were recorded, which totalled $1.91m. This is in comparison to the previous week’s net sales of $0.42m.

There was significant selling activity in the banking market ($1.4m) and the fertilizer market ($1.1m).

On the domestic front, it was stated that firms spent $10.5m purchasing, with individuals coming in second at $5.8m.

The average number of shares moved was 174m, which is a 3pc increase from the previous week’s average, and the average value of those shares was $25m (up 16pc WoW).

In addition to these significant developments, Nepra gave its approval to a hike in the tariff for DISCOs of Rs1.55 per unit, textile exports increased by 28.6pc from July to May, OGDC discovered gas in Sindh, and in the period from July to April, banks disbursed more than Rs1 trillion in Agri-credit.