Karachi, May 17, 2019: KSE100 closed on a negative note for a seventh consecutive week taking 7 weeks loss to 15 percent. During the outgoing week, the index lost 1,550pts or 4.5% WoW, highest percentage loss after 30 weeks, closing at level of 33,167.
The continuous fall in index level is due to, devaluation of rupee against USD for last two working days of the week, expected a hike in the policy rate in next monetary policy meeting on Monday and selling pressure from mutual funds (net selling of US$14 million in 4 sessions).
Fertilizer sector remained among one of the top laggards to index, as concerns over withdrawal of sales tax exemption and rumor related to replacement of GIDC with FED on gas supply are doing rounds. Similarly, cement sector also performed poorly, as factors like slower economic growth, hike in the policy rate and devaluation are likely to have a substantial dent on manufacturers profitability. Average traded volume was up by 46 percent to 107 million shares, similarly, value up by 31 percent.
Based on four days of data, foreigners remained net buyers of US$1.5 million, where major buying was witnessed in banks US$5.4 million. Similarly on local front companies and Individual remained net buyers of US$6.7 million and US$4.4 million respectively, while mutual funds sold worth of US$14 million.
Important News, Views & Corporate Announcements
Rupee slides further to Rs150 against USD.
The foreign exchange reserves held by State Bank of Pakistan declined by US$138 million to US$8.845 billion due to external debt servicing and other official payments.
The IMF has agreed to lend US$6 billion at comparatively cheaper mark-up rate, which would help in acquiring another US$2-3 billion from World Bank and Asian Development Bank at a low interest rate.
The rules and forms for the Asset Declaration Scheme 2019 will be made public in order to make the amnesty scheme operational. The SBP will also issue a circular for making payments under the amnesty scheme.
Assistant to PM on Health Services, Regulations, and Coordination Dr. Zafar Mirza warned pharmaceutical companies to bring down the prices of medicines to 75 percent or the government will move drug courts against them.