Karachi August 4 2024: The KSE100 index experienced a modest increase of 0.25% or 197 points during the week ending August 2, 2024.
Despite positive developments, such as a 100 basis point cut in the policy rate by the SBP, an upgrade of Pakistan’s rating by Fitch, and a decline in July 2024 inflation to 11.1% from 12.6% in June 2024, the rise in the index remained subdued.
Developments during the Week:
• In its monetary policy announcement on Monday, the SBP reduced the policy rate by 100 basis points to 19.5 percent.
• Fitch Ratings upgraded Pakistan’s Long-Term Foreign-Currency Issuer Default Rating (IDR) to ‘CCC+’ from ‘CCC’.
• Inflation for July 2024 came in at 11.1 percent year-on-year, compared to 12.6 percent in June 2024.
• Pakistan’s trade deficit for July 2024 was USD 1.94 billion, a 19 percent month-on-month decrease.
• PIB yields decreased by up to 36 basis points.
• SBP reserves increased by USD 75 million to USD 9,102 million.
Foreigner sold the shares of worth USD 2,225K compared to net buying of USD 4,582K last week. Major selling was witnessed in Food sector (USD 1,900K), Fertilizer (USD 580K), Cement (USD 414K), Oil and Gas Exploration (USD 89K) and Oil and Gas Marking (USD 59K). While the buying of USD 704K has been witnessed in the Technology sector followed by a net buying of USD 233K in the Banking sector.
On the local side, Insurance Companies remained the highest net buyer with a net buying of USD 1,778K followed by Individuals USD 1,471K, Mutual Funds USD 1,405K and Brokers USD 528K. However, Other Organizations and Companies on the local side remained a net seller of USD 1,755K and USD 1,183K, respectively.
Average volumes arrived at 356mn shares up by 6 percent WoW, while the average value traded settled at USD 61mn also up by 8 percent WoW.
