Karachi, September 24, 2021 (PPI-OT): Carnage at the PSX as KSE100 loses 3.4% in a week

Marking the fifth consecutive negative closing, the KSE100 ended the trading session today at a level of 45,073, posting a weekly loss of 1,563 points (-3.4%). Selling pressure was seen across the board as all major sectors lost value. Investors remained at bay as average volume declined to 384mn shares per day while average daily traded valued was recorded at US$73mn (down 18% WoW). Tables turned on the local side as Individuals – who were the largest net buyers last week – became the largest net sellers while foreign investors turned net buyers this week. On the news front, an IMF staff level meeting is expected to be held on October 4th which will determine the disbursement of a further US$1bn tranche.

Moreover, the ADB has maintained Pakistan’s growth rate at 4% for FY22. The Monetary Policy Committee met this week and decided to increase the Policy Rate by 25bps to 7.25%. Some positive developments were seen in the power and steel sectors; the government slashed duties on import of steel scrap while the ECC approved payments to IPPs under the 2002 Power Policy. Furthermore, reserves held by the SBP declined by US$479mn to US$19.5bn in the week ended 17th September 2021.