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JS Securities Limited – Weekly Review (November 11, 2022)

Karachi, November 11, 2022 (PPI-OT): KSE100 continues its rally, closing +3% WoW

KSE-100 continued its upward trajectory throughout the week closing in at 43,093 points, up 3.0%. Sector wise performance reflected Banks (3.4%) and Oil and Gas Exploration (6.8%) among the key outperformers whereas Food (0.3%) and Chemical (0.5%) sectors remained primary underperformers during the week. Foreigners remained net sellers (US$4.6mn) with the highest selling witnessed in Banks (US$5.3mn) and the IT sector (US$1.0mn). On the news front, fiscal deficit for 1QFY23 rose to Rs809bn which equates to 1% of GDP as against 0.7% during SPLY. SBP reserves on the other hand decreased by US$956mn WoW to US$7.96bn owing to external debt payments.

Roshan Digital Account (RDA) inflows increased to US$5.3bn as of Oct-2022, up US$146mn MoM with majority investment in Naya Pakistan Certificates (63% of total). As per Finance Minister Ishaq Dar, Pakistan has managed to secured financial support of US$13bn from friendly countries with assurances of investments worth US$20bn. Starting date for 9th review of IMF program remained unclear (officially scheduled for 3rd Nov-2022) as GoP is yet to finalize the economic framework (a requirement by the Fund) and Planning Ministry reaches a consensus GDP estimate. The meeting is now expected by end of Nov-2022.