Karachi, October 21, 2022 (PPI-OT): KSE100 Index gains 0.6% WoW

The week started on a negative note over US President’s remarks on the security of Pakistan’s nuclear weapons. The index however recovered during the week after US State department’s clarification dismissing rumours that were sparked by President Joe Biden’s impromptu comments about the nation’s nuclear program. KSE100 Index closed up 0.6% WoW. Investor participation also witnessed a drop of 14% WoW with avg. volumes clocking in at 228mn shares. Among key performers were Tobacco (11.9%) and Power (1.5%) sectors, while OMC sector (-3.3%) stood out as the key under performer.

On the news front, Finance Minister announced rescheduling of non-Paris Club debt of around US$27bn largely owed to China. Rupee continued to depreciate against the USD losing 1.1% WoW. Moreover, T-Bill yields slightly declined in the auction held this week by up to 2bps. In other news, as per SBP data, Current Account Deficit came in at a 17-month low for Sep-2022, at US$316mn (-53% MoM). CAD has shrunk over steep decline in imports driven by administrative controls. Furthermore, The ADB approved a US$1.5bn loan to provide relief for floods, the amount is expected to be received over the coming days. The week ended with the announcement of ECP’s verdict disqualifying PTI chairman.