JS Securities Limited – Weekly Review (January 13, 2023)

Karachi, January 13, 2023 (PPI-OT): KSE100 sheds 2% amid heightened political noise

In a turnabout from previous trend, market closed negative this week, losing a total of 684 points. This was despite the index recovering during the week over Pakistan securing commitments worth ~US$10bn (~3% of GDP) at the International Conference on Climate Resilient Pakistan for rehabilitation of flood affected areas, covering for ~62% of the estimated US$16bn recovery needs estimate. On the political front, temperature remained high in Punjab where CM Pervez Elahi successfully received the vote of confidence and subsequently signed a summary to dissolve the Punjab assembly.

Investor participation inched up this week by 4% WoW. E and P sector received limelight during the week after Finance Minister indicated executing the piling gas circular debt’s settlement by partially adjusting government E and P companies’ receivables against prospective dividends from the same. Several financing commitments from friendly countries also came true throughout the week. The UAE consented to provide an extra US$1bn and roll over an existing US$2bn loan after Prime Minister Shahbaz Sharif’s visit. In addition, Pakistan and the Saudi Arabia inked a new deal to finance oil futures worth US$1bn. SBP reserves reported a drop again, falling to its lowest level since Feb-2014 at US$4.3bn.