Karachi, April 22, 2022 (PPI-OT): Market falls by 2.2% WoW amid economic concerns

After peaking last week at 46,602 level post clarity on the political front, KSE100 during the week reversed gains owing to concerns over the economic scenario of the country. As a result, the market closed in at 45,553 level, down by 2.2% WoW. Most sectors posted a decline on a WoW led by Cements, Power, Pharma and Banking sectors. Foreigners turned net sellers this week with total net selling clocking in at US$1mn. Selling was broadly witnessed in Banks (US$1.7mn) while the Tech sector witnessed buying of US$0.6mn during the week.

On the news front, textile exports during Mar-2022 surged by 19.9% YoY while LSM posted a growth of 8.4% YoY during Feb-2022. On the other hand, the country’s petroleum and food imports swelled by 60% YoY during 9MFY22. PKR also continued to slide against the US$ reaching Rs186.8, while slight improvement in FX reserves (up by US$17mn WoW) was reported last week. Furthermore, IMF has projected Pakistan’s GDP/inflation estimates to deteriorate YoY to 4%/11.2% during FY22. On the int’l front, crude oil prices declined during the week despite the production of 1.45mn bpd by OPEC, which is lower than its target for March, due to concerns regarding demand.