KARACHI: The Pakistan Stock Exchange (PSX) remained in a slump for a second week as worries over weak economic data grew.Issues pertaining to the enormous losses sustained as a result of the disastrous floods and macroeconomic uncertainty lingered throughout the week, which caused the benchmark KSE-100 index to decline.
It completed the week at 41,948 points, a decrease of 0.9% or 361 points.Starting off poorly, the market was unable to draw investors because they preferred to stay put as a result of the policymakers’ lack of clarity over their economic strategy.
The bears opened the week by driving the stock market below the 42,000-point level due to worries about inflation and GDP growth following the country’s flood catastrophe, where the government has estimated damages at $15 to $20 billion.
Despite last week’s disbursement of the $1.17 billion International Monetary Fund (IMF) loan, which increased the State Bank of Pakistan’s reserves to $8.8 billion, the rupee continued to decline against the dollar and ended the week at Rs228.18 (down by Rs9.2, or 4%, week over week).
Additionally, a 24% year-over-year fall in cement sector deliveries in August 2022 further lowered market confidence.In addition, the floods caused a sharp decline in urea and DAP sales of 16% and 87%, respectively, year over year. As a result, the market remained dull.
PIA decided to add five more planes to its fleet, Pakistan petroleum sales fell by 24% in 2MFY23, the IMF predicted external debt to reach $140.9 billion, and ECC approved Trading Corporation of Pakistan (TCP) to import 0.3 million tonnes of urea on a government-to-government basis, among other significant developments during the week.
Foreign selling, which totaled $2.82 million this week compared to a net sell of $0.74 million the previous week, persisted. Technology ($1.4 million) and cement ($0.6 million) also saw sales.
