Karachi, January 20, 2023 (PPI-OT): KSE-100 continues with the free-fall, loses 5% WoW
The stock market continued on its downward track as political and economic unrest persisted and closed the week in negative territory at 38,408, down 4.8% WoW. Investor participation showed a noticeable decline of 22% WoW. In the first two trading sessions of the week, the Index lost a total of 1,980 points. Some recovery was witnessed following after newsflow suggested government’s willingness to go for necessary reforms to get the IMF program back on track. Increase in revenue collection, rationalization of gas and electricity tariffs and a flexible exchange rate regime were among the essential policy measures discussed by the cabinet during the week.
On the political front, temperature remained high as the National Assembly speaker accepted pending resignations of PTI MNAs soon after PTI started contemplating return to the National Assembly. On the other hand, KPK Governor signed the summary sent by the Chief Minister advising him to dissolve the Provincial Assembly during the week. On the economic front, Current Account Deficit for Dec-2022 clocked in at US$400mn, down 78% YoY due to 34% YoY lower imports as government and regulator administrative controls stayed in place. SBP reserves reported a meagre increase, clocking in at US$4.6bn.