The KSE-100 index closed FY20 with a positive return after two consecutive years in red, portraying a PKR based increase of 1.5%.

The performance of the outgoing fiscal year is in stark contrast to the last 10-Yr performance of the benchmark index, which has depicted an average positive return of 15.4%.

Key highlights of the outgoing year include:

1. Macroeconomic concerns were largely controlled before COVID-19 outbreak, especially on the external side [CAD (still under control), currency stability, and building up of FX reserves].

2. However, post COVID-19 outbreak, the economy slowed down significantly amid introduction of a lockdown and overall decline in consumer spending.

3. The government announced a fiscal stimulus amounting PKR 1.3tn while the SBP announced various schemes/incentives to support households and industries’ stressed cash cycles alongside a reduction of 625bps since Mar’20 post COVID-19 to stimulate spending and economic activity.

4. Profitability declined by -7.2% YoY in 9MFY20.

5. Foreign outflow (USD 279mn) continued for the fifth consecutive year. However, foreigners bought T-bills and PIBs worth USD 688mn. (AHL Research)