JS Securities Limited – Weekly Review (January 27, 2023)

Karachi, January 27, 2023 (PPI-OT): Bulls return – KSE-100 gains 5% WoW

KSE-100 continued its upward trajectory throughout the week driving the index to rise 2,438 points (+6.3%) over three consecutive upbeat sessions before some profit-taking on the last trading day of the week. KSE-100 closed the week at 40,450, up 5.3% WoW. Investor participation showed a noticeable increase of 52% WoW. Among key outperformers were Refinery (+8.7% WoW), E and Ps (+7.0% WoW) and Cements (+6.7% WoW) sectors. Monetary Policy Committee (MPC) on Monday announced a 1% hike in policy rate taking the rate to 17%, broadly in-line with market estimates. The banking sector closed up 6.0% WoW.

During the week, govt. also shared its clear and strong commitment to meeting the IMF’s requirements. The rupee lost 9.6% of its value in a single day, taking WoW depreciation to 12.5%. Government also indicated to increase revenue collection through additional taxes and rationalize gas and electricity tariffs. On the political front, temperature remained high as the National Assembly speaker continued to accept pending resignations of PTI MNAs after PTI started contemplating return to the National Assembly. SBP reserves reported a decline due to external debt repayments, clocking in at a 9-year low of US$3.6bn.