During the week, the KSE-100 gained 1,946 points and closed at 42,096 points. The positive progress led to the development in external accounts since the assuring statements of the top executives of SBP and the finance ministry that the IMF tranche to arrive shortly as Pakistan has met all prior actions for the review, including the arrangement of USD4.0bn from friendly countries.
The yields of Pakistan’s international bonds declined, and the country repaid USD40mn coupon payments on Sukuks. China has rolled over a USD2bn loan in safe deposits. KSA and UAE are also expected to pledge deposits amid support of dwindling foreign exchange reserves which boosted the market sentiments.
Moreover, the international oil prices were down by 11% to USD88/bbl and the trade deficit narrowed by 21%YoY to USD2.6bn in Jul’22 due to lower imports; the PKR massively recovered as it gained PKR15/USD during the week and clocked in at Rs 225/USD due to expected foreign inflows and lower demand which further boosted the market sentiments.
Courtesy – Spectrum Research’