KARACHI: After a roller coaster ride in the week ending October 1, 2021, Pakistani stocks are expected to build on the upcoming International Monetary Fund (IMF) earnings and review season, where official talks are expected start next week.
“[The] the government appears to be preparing for tough measures to increase the tax base. Meanwhile, gas price hikes also appear to be a possibility, ”an AKD Securities analyst said.
“Investors should take a top-down approach to invest where [the] the possibility of further interest rate hikes could [the] banking sector in [the] the limelight, while tech and textiles (on currency depreciation where higher profits have yet to be factored in) are other areas of focus. “
The Pakistan Stock Exchange’s KSE-100 index fell 0.44%, or 201.82 points, to close at 44,871.70 points. The KSE-30 stock index fell 0.75%, or 134.2 points, to close at 17,608.16 points.
“This was the third Friday that the index closed negatively on a weekly basis,” said Ali Zaidi of JS Global Capital.
Average daily volumes traded declined 7.5 percent to 355 million shares / day, while the value of shares traded averaged $ 76 million / day. Foreign sales were seen in the outgoing week, reaching $ 21.9 million, against net purchases of $ 6.7 million last week.
“A substantial part of the net sales of foreign investors has been absorbed locally by banks and insurance companies,” Zaidi added.
On the news side, the Paris Club has extended until December 2021 the deadline for paying Pakistan’s $ 1 billion debt. the import invoice.
Internationally, coal prices have continued to rise above $ 200 / tonne, more than levels last seen during the 2008 global financial crisis, making the cement sector one of the of the main latecomers during the week.
On the revenue side, the Federal Board of Revenue (FBR) collected 1.395 billion rupees in taxes in the first quarter of the fiscal year, exceeding its target and posting 38% growth from 1.011 billion of rupees collected during the same period last year. year.
The central bank’s foreign exchange reserves declined from $ 248.9 million to $ 19.29 billion in the week ended September 24, 2021.
“The market is expected to be positive over the coming week as the scripts are trading at attractive valuations,” one analyst said.
“Besides, [the] The IMF review begins on October 4, 2021, which, if successful, could provide [the] much needed respite from the feeling of a bad investment.
In addition, the recent statement by US Secretary of State Antony Blinken, recognizing Pakistan’s crucial role in making talks with the Taliban successful, will allay investor concerns.