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JS Securities Limited – Weekly Review (November 25, 2022)

Karachi, November 25, 2022 (PPI-OT): KSE100 recoups losses; gains 0.5% WoW

After posting a sharp decline last week owing to political uncertainty and delay in talks with IMF, the index witnessed a recovery during the week. Week started with a positive news of encouraging Current Account Deficit (CAD) numbers where despite lower remittances, CAD for Oct-2022 clocked in at US$567mn, well below the country’s monthly avg of US$1.2bn during CY22 TD due to lower trade deficit. The market however remained volatile as investors waited for clarity on the political front. This was evident from the drop in volumes which declined 14% WoW. KSE100 Index closed up 0.5% WoW.

Key performers were Tech (4.2%) and Autos (1.6%) sectors, while Power sector (-3.8%) stood out as the key under performer. On the news front, MSCI for its Frontier Market Index added four companies in the recent rebalancing which kept these stocks in the limelight. The 5-year Credit default swap showed great volatility during the week on back of political unrest. Finance Minister on the other hand, reiterated that the country at present does not face any risk of default. During the week, Government nominated Lt. General Asim Munir as the next Chief of Army Staff. The week ended with SBP’s announcement of increasing policy rate by 100bp to 16%.