Political clarity helps kse-100 index gain 4.85%wow
The political crises which emerged on April 3 when the deputy speaker blocked the ‘no confidence ‘ on ‘ foreign conspiracy ‘ which was finally intervened by Supreme Court and Shehbaz Sharif finally emerged as new Prime Minister. The benchmark index of the Pakistan Stock Exchange (PSX) registered the highest day-on-day increase in points on Monday as the investors celebrated the end of political uncertainty.
The psychological barrier of 46,000of KSE-100 index was broken and on Monday added 1,700 points following the ousting of PTI from the Federal Government over the weekend. The previous record of the highest daily gain was of 1,566 points in June 5,2017.
The benchmark KSE-100 Index added 2,157 points to close at 46,601.54. Trading activities increased to average volume of 777m. The market capitalization added Rs.284bn and closed at Rs.7,758 T
Monday: KSE-100 index 46,144.96 Change (+1700.38) Vol 558 m Mkt.Cap Rs.7,710 T
Tuesday: KSE-100 index 46,407.26Change (+262.3) Vol 494 m Mkt.Capt Rs.7,738 T
Wednesday: KSE-100 index 46,165.50 Change (-241.76) Vol 475 m Mkt.Capt.Rs.7,694T
Thursday: KSE-100 index 46,484.43 Change (+318.93) Vol 495 m Mkt. Capt. Rs7.738 T
Friday: KSE-100 index 46,601.54 Change (+117.11) Vol 366 m Mkt. Capt. Rs7,758 T
Foreigners were net buyer $1.29 m during the week; companies were buyer $2.12 m, Banks were seller $2.92m ; Mutual fund net seller $9.89m individuals net buyer $18.93m and Insurance were seller $7.76m.
Volume leaders during the week were: TRG Pak 170m; Maple Leaf and Unity Foods 20m each; Treet Corp 74m; CNergy 71m; Ghani Gio Hol 66m; TPL Properties 44m; Telecard 33m; WTL 32m; Hum Network 23m; PRL 18m; Fauji Cement 17m; G3 Tech 10m and F.Nat.Equities 7m.
Participants: Co 357; Gain 196; Loss 143 and Unchanged 18
– Overseas Pakistanis sent a record $23 billion in remittances in the first nine months of the current fiscal year while inflow of $2.8 billion in March alone were also historic.
– No outflows from RDA, says SBP. So far in April, inflows are very strong around $86 million and have now surpassed $4 billion.
– The overall bank credit to the private sector surged by 170 per cent in the first nine months of the current fiscal year.
– World Bank slashes Pakistan’s growth forecast to 4.3 per cent.
– Rupee continued its rising streak against US dollar from interbank rate of Rs.183 to Rs.181.55 from Monday till Friday and in the open market from Rs.185 to Rs.182.
– Inflation measured through Sensitive Price Index (SPI) posted a decline of 0.68 per cent for the week ended on April 14.
-Talks with IMF for programme revival from 18th of April.
– Banks approve Rs.180 billion low-cost housing loans in first quarter.
– Moody’s expect 3-4 per cent for 2022 and 4-5 per cent in 2023.
The business community across the country sees a tough road ahead for the incoming government with multitude of economic challenges. President Muhammad Idrees of KCCI believes that government will be faced with the challenges arising from the Russia-Ukraine war and its impact on international trade. The SBP has also not played in regulating the exchange rate, leaving the rupee- dollar parity to the market forces. The new government would also need to take steps to bring down the cost of doing business as well as the duty and tax structure on imported raw materials to reduce the cost of production. The new government needed to take notice of the SBP jacking up the interest rate to 12.25 per cent besides pushing up the export refinance rate.
Raees Uddin Khan
Research & Development, Institute of Securities Management Research & Training (Pvt) Ltd, Karachi.
Dated: April 16, 2022