PSX weekly review
KARACHI: The bears regained control of the Pakistan stock market in the outgoing week as looming uncertainty on the political front, coupled with rising oil prices in the international market, drove the index back into the negative territory. The benchmark KSE-100 index dropped 898 points or 2.02% to close at 43,653 points.
The market commenced the week on a negative note on wiping-off 1,284 points day-on-day as international oil prices touched a 14-year high (Brent rose to $139 per barrel) since US and EU discussed banning Russian oil imports, raising concerns over the current account position.
Moreover, the submission of a no-confidence motion against Prime Minister Imran Khan by the Opposition parties in the National Assembly added to the woes of the investors.
Amidst the political noise, the State Bank of Pakistan (SBP) kept the policy rate unchanged at 9.75% in its monetary policy meeting, which brought bulls back into the market.
Later during the week, the international oil prices witnessed a hefty drop led by a statement from UAE’s ambassador to the USA urging OPEC to increase production, which cushioned the overall dip (adding back 810 points day-on-day to the index).
Other major developments during the week were: Engro Powergen Thar Limited (EPTL) said the recent explosion caused no major damage, 6-month KIBOR reached 11.93%, foreign exchange reserves decline $207 million, UAE wants to acquire Guddu Power Plant, and Oil and Gas Regulatory Authority (OGRA) backs diversifying oil suppliers, inter oil marketing companies (OMCs) sales.
Meanwhile, foreign selling was witnessed this week, clocking in at $3.13 million against a net sell of $0.97 million recorded last week. Selling was witnessed in banks ($4.4 million), and textiles ($0.4 million).
On the domestic front, major buying was reported by companies ($5.4 million), followed by other organisations ($3.7 million).
During the week under review, average volumes clocked in at 214 million shares (down by 0.7% week-on-week), while average value traded settled at $38 million (down by 11% week-on-week).
