FLASHNEWS:

JS Securities Limited – Weekly Review (July 07, 2022)

Karachi, July 07, 2022 (PPI-OT): Market remained sluggish with thin volumes

Pakistan equities closed the week on a negative note at 41,344, reporting a decline of 0.7% WoW. The volumes remained dry with 90 million shares trade during the week, witnessing a decline of 55% on WoW basis. Key underperformers during the week were Refinery, Engineering and Fertilizer sectors. Investors remained on the sideline owing to lack of any positive trigger and further delays in IMF staff level agreement. Moreover, CPI for the month of June touched 13-years high of 21.32% YoY against the market expectation of around 18% YoY. Along with this, trade deficit for Jun-2022 touched 5 months high of US$4.85bn, up 34% YoY and 20% MoM, taking the FY22’s trade deficit to US$48.35bn, up 55%YoY.

On the international front, oil prices took a major correction, with Brent declining by 12% WoW to close at US$100/bl as fears regarding demand slowing down due to risk of recession crept in. On the news front, the Petroleum Division has reportedly proposed hike in gas price in range 42% – 82% for various segments of the industry. Moreover, the implementation of IFRS-9 for banking sector has been extended till Jan 1, 2023.