Highest monthly trade deficit number hits PSX today

·          Bloodbath session was observed today as investors were unable to digest series of outrageous economic indicators. First of all, highest ever monthly trade deficit number of USD 5.1bn, exports stood at USD 2.9bn while imports were USD 8.0bn. Secondly, expectation of higher interest rate increase in the upcoming monetary policy as 3M cut-off T-bill yields increased by 229bps to 10.79%, 6M at 11.50% and 12M at 11.51%.

Lastly, expectation of higher CPI number next month due to low base effect and further devaluation of Pak rupee. Mostly stocks closed on their lower circuit. Moving forward, we expect the market to remain volatile and recommend cautious approach.

·          The Index closed at 43,234pts as against 45,369pts showing a decrease of 2,135pts (-4.7% DoD). Sectors contributing to the performance include Banks (-360pts), Cements (-314pts), E&Ps (-240pts), Technology & Communications (-212pts) and Fertilizers (-204pts).

·          Volumes increased from 241.7mn shares to 386.8mn shares (60.4% DoD). Traded value also increased by 52.4% to reach US$ 79.7mn as against US$ 52.3mn.

·          Stocks that contributed significantly to the volumes include WTL, DCR, BYCO, UNITY and GTECH.

Courtesy- AHL

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