Karachi, February 19, 2021 (PPI-OT): Market edges up by 0.9% WoW in a volatile week
It was a bit of a rollercoaster ride at the local bourse this week, as the index started off positively in the initial trading sessions, before witnessing a sharp correction and ending the week with a flattish Friday. Cumulatively, the KSE100 index nudged higher by 0.9% WoW to a level of 46,227. Although activity was 19% lower this week with daily volumes averaging at 595mn shares per day, these were still well above YTD FY21 daily average of 486mn shares. Similarly, average value traded per day declined by 6% WoW to US$159mn. News on the resumption of the IMF program finally surfaced over the weekend, confirming that the IMF team had reached a Staff Level Agreement.
However, news flows of tougher conditions associated with an IMF program, particularly removal of income tax exemptions for corporates amounting to Rs150-200bn caused somewhat of a dampener to investor sentiment. Other news during the week included (1) an 8% YoY increase in textile exports during 7MFY21, (2) inflows into Roshan Digital Account hit US$500mn, (3) Foreign reserves with the SBP declined by US$59mn, and (4) a 19% surge in remittances for the 8th consecutive month.