PSX weekly review Bulls dominate as KSE-100 index shoots past 42,000 mark

KARACHI: The Pakistan Stock Exchange (PSX) recouped losses from the previous week with the benchmark KSE-100 index gaining 1,946 points or 4.9% to settle at 42,096.24. Trading remained volatile throughout the week with the index finishing four out of five sessions in the green.Interest in main board sectors kept the market buoyant as investor participation remained strong. The index maintained a healthy momentum on back of trade deficit and strengthening rupee against the US dollar. Additionally, sector-specific developments also spurred buying interest in select stocks, which further fuelled the rally.
The market commenced the week on a negative note as inflation for the month of July 2022 came in at 24.9%, — highest level in last 14 years.Fortunately, tables turned and the sentiment turned positive after the International Monetary Fund (IMF) announced that Pakistan had fulfilled the last remaining pre-requisite for the loan (incremental hike in petroleum development levy on MS and hi-speed diesel).
With this renewed hope, the Pakistani rupee strengthened against greenback, gaining Rs15.33, or 6%, week-on-week to close at Rs224.04 this week.
Furthermore, trade deficit significantly declined in July, down by 47% month-on-month. Moreover, reduction in international oil prices post OPEC+ meeting (WTI trading below $88 per barrel compared to $98.62 per barrel last week) further cemented the ground for bulls.-PNP