Dear Clients,
KSE-100 started with selling pressure today as Finance Minister was asked to resign but ended positive. Pakistan Rupee continue to appreciate to close Rs 153.09. Continuous supply of USD with lower travel/higher remittances keeping the currency strong. Stronger upside was witnessed in Unity Foods, Pak Electron, Pak Suzuki, Honda Car & MCB Bank’s shares.
KSE-100 closed up by 59 points to 44,491.0 levels with 175.4mn volumes. Highest activity was recorded in BYCO with 46.1mn shares traded, TRG (+0.37%) with 35.8mn shares and UNITY (+6.39%) with 30.8mn shares traded.
Similarly, right after IMF’s nod for $500m, Pakistan has secured $300 from ADB for hydropower, $1.3b from World Bank & today books opened for global bond issuances as well. Asad Umar has also said Pakistan would import 3m dozes of Chinese vaccine by Mid April that may help reduce covid outbreak. However, next week FIA summons people on sugar scandal & investors could get nervous on potential involvement of PTI’s members.
We feel currency strengthening, coupled with PM Khan’s negative covid test & Eurobond issuance is going to create a new rally in cyclical stocks over next few months. Excitement over bond issuance can keep market open positive tomorrow.
KASB Research
