FLASHNEWS:

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

Karachi, October 07, 2022 (PPI-OT): Bulls remain in charge as KSE100 Index gains 2.3% WoW

Carrying last week’s bullish momentum, KSE100 Index closed up 2.3% WoW. Investor participation also witnessed a return, recording 118% WoW growth to a low base last week. Among key performers were Technology (8.9%) and Power (6.3%) sectors, while Banking sector (0.2%) stood out as the key under performer. On the news front, Finance and Revenue Minister Ishaq Dar announced subsidized electricity rates for the export sector during the week. The said arrangement will cost the govt. around Rs90-100bn.

Rupee continued to appreciate against the USD gaining 3.7% WoW. SBP reserves dropped by US$106mn WoW to US$7.9bn. This translates to an import cover of less than six weeks. ADB during the week announced to provide further flood relief support, the approval for the support is under process and is expected to be received during the ongoing month. On the international front, OPEC+ agreed to significant cuts in oil output, reducing supplies in an already constrained market. On sector’s news front, Cement sales for Sep-22 declined by 7% YoY to 4.3mn tons. Furthermore, Honda Atlas announced the shutdown of its plant from October 04 to October 11, 2022 citing supply chain disruptions as major reason.