· The KSE100 index faced downward pressure throughout the month of August, witnessing a correction of 3,032 points to conclude at 45,002 points, marking a 6.3%MoM drop. KSE100 daily traded volume remains lacklustre, averaging 165mn shares vs. an average of 186mn shares in the previous month, signifying a 12%MoM decline.

· The current account also reported a deficit after a 4-month streak of surplus, recording a deficit of US$809mn, primarily due to the easing imports.

· Sector-wise, the Leasing and auto parts sector took the spotlight with a total gain of 10.6%/4.7% MoM. Conversely, the OMC sector led the downward trend with a cumulative monthly loss of 15.1 %MoM.

· Moving ahead, the market hinges on outcomes of 1) upcoming MPC meeting on Sep-14, 2) next review with IMF in Oct and 3) developments related to energy reforms.

Courtesy – AKD Research