Pakistan Stock Exchange (PSX) maintained its positive momentum for the third consecutive week with the index closing higher by 2pc on a weekly basis, taking the three-week cumulative return to 8pc.
As per the analysts, positive sentiment was witnessed among investors due to a decline in bond yields in the range of 90-130 basis points coupled with improved macroeconomic indicators.
According to the recently-published data, the current account deficit (CAD) for the month of August declined by 15pc YoY. Meanwhile, oil prices remained high during the outgoing week owing to an attack on the Saudi oil facilities which attracted investor towards exploration & production stocks, translating into cumulative weekly return of +2.8pc, 3.7pc, 3.2pc, & 6.5pc in Pakistan Oilfields (POL), Oil & Gas Development Company (OGDC), Mari Petroleum Company Limited (MPCL) and Pakistan Petroleum Limited (PPL) respectively.
Based on NCCPL data, foreigners remained net buyers of $7.75 million. On the local side, mutual funds were net sellers of $6.76 million, whereas individuals remained net buyers of $6.72 million.
KEY DEVELOPMENTS
According to the petroleum minister, Pakistan has approved the construction of five liquefied natural gas (LNG) terminals to groups including Exxon Mobil Corp and Royal Dutch Shell, aiming to triple its imports and to address issues pertaining to the chronic gas shortage.
State Bank of Pakistan (SBP) Governor Dr Reza Baqir has said that the transition to a market-based exchange rate system, building foreign exchange reserves, and bringing down inflation were key elements of the SBP’s reform programme to restore financial stability and lay the foundations for sustainable and shared growth.
The Federal Board of Revenue (FBR) has withdrawn at the eleventh hour a summary that it earlier moved to seek the federal cabinet’s approval for reducing sales tax liabilities of the monopolistic car assemblers.
RUPEE STRENGTHENS
The value of US dollar at interbank during the outgoing week dropped by 11-paisa against the Pakistani rupee. Dollar at interbank closed at Rs156.08 on Friday while at open market, it remained unchanged at Rs156.30.
