JS Securities Limited – Weekly Review (May 13, 2022)

Karachi, May 13, 2022 (PPI-OT): KSE100 index dives by 1,354 points over lack of clarity

Delay in clarity over economic reforms and uncertainty over the tenure of the newly formed government took a toll on the equity markets in the first half of the week, taking benchmark index down by 641 points to 42,863 level. Nonetheless, some form of comfort over the government staying in position for more than at least a couple of months put a brake on further drain, closing the week down 1,354 points at 43,486, with almost all sectors closing in red. The negative sentiments were added by consistent depreciation in the PKR against the US$, closing at its all-time low of 193 this week (-8.5% CY22 TD).

Market participation witnessed a healthy jump this week as avg. volumes increased by 45% WoW, while traded value increased by 40% WoW. Banks/DFIs remained key buyers with net buying of US$16mn. On the other hand, Individuals remained net sellers (US$10mn). In recent news, meetings with the IMF team is to resume from 18th May. Moreover, rates of National Saving Schemes increased by up to 250 bp. Cement and POL sales data was also released this week, depicting divergent trends. POL sales for Apr-2022 reported 32% YoY growth while Cement sales declined by 29% YoY during the same period.