KASB Pakistan Market Review

Dear Clients,

Pakistan Stock Exchange bled profusely today. Rising number of covid cases coupled with sharp rise in the infection rate propelled Punjab government to impose lockdown is several cities with higher than 12% infection rate. However, industrial activities would not be suspended. Sentiment has dampened over similar expected measures in Sindh. Similarly, SAPM’s Nadeem Babar’s being asked to resign by the PM also dismayed Refinery investors.

KSE-100 closed down by 1,090 points to 44,431.8 levels with 316.2mn volumes. Highest activity was recorded in BYCO (-7.89%) with 80.2mn shares traded, PRL (-7.26%) with 48.9mn shares and ANL (-0.05%) with 45.6mn shares traded.

Meanwhile, currency has strengthened continuously against USD to touch Rs 154 today. Lockdown restrictions reduce the demand for USD in Pakistan as economic activities grind. We expect negativity to prevail tomorrow as well as selling pressure continues & buyers wait for the dip.

We saw major off-market transaction in MCB from insiders, as per the PSX notice. From FX reserves perspective, World Bank’s $1.3n + IMF’s $500m and potential, $2-2.5b Eurobond would keep sentiment strong in the upswing once covid cases decelerate.

KASB Research

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