Karachi, December 16, 2022 (PPI-OT): KSE100 continues to lose steam, down 1%

KSE-100 witnessed a downward trend during the week due to lack of political and economic stability closing in at 41,301 points, down 1% WoW. Sector wise, Refinery (-4.5%), Chemicals (-4.0%), OMCs (-2.9%) and Banks (-1.8%) remained key underperformers whereas Textiles (+2.7%) and Fertilizer (+1.6%) were key outperformers. Foreigners remained net sellers during the week with highest selling witnessed in Banks (US$12mn). On the news front, SBP made amendments to the Domestic Systemically Important Banks (D-SIBs) framework where requirement for Higher Loss Absorbency (HLA) capital surcharge for designated D-SIBs was revised.

The GoP in its T-bill auction raised Rs1.62trn against it’s target of Rs1.35trn. Data for worker remittances showed a MoM decline of 5% in Nov-2022 to US$2.1bn hitting it’s lowest since Aug-2020 while SBP reserves remained stable during the last week at US$6.7bn. Petrol price was slashed by Rs10/liter to Rs214.8 whereas diesel prices were cut by Rs7.5/liter to Rs227.8. On the international front, OPEC stuck to its 2023 oil demand growth forecast of 2.3% YoY citing relaxation of zero COVID policy in China as a major upside to demand. ADB on the other hand revised its growth target for Asia during 2023 downwards from 4.9% to 4.6%.