Weekly Review: COVID results to move market

Weekly Review: COVID results to move market

KARACHI: The stock market likely to move with increase or decrease in number of cases during the next week.

Market’s mood on Monday is contingent upon the the news flow over the weekend, analysts said.

The lockdown effects need to be seen on the numbers, however, the cases & infection rates are still on the rising trend.

Economic activity is low while the partial lockdown should reduce demand for USD to keep currency/FX reserves buoyant.

The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gained 1.5 percent on week-on-week basis.

Major events during the outgoing week were:

– Monetary Policy Committee maintaining policy rate at 7 percent,

– news that government is expected to hire advisers for Eurobond by early next week,

– imposition of constraints on business hours across country on recommendation of NCOC amid rising Covid cases,

– SBP’s forex reserves crossing $13 billion mark on arrival of government of Pakistan official inflows and

– news that government intends to pay dues of 53 IPPs in shape of promissory notes in two or three installments.

Foreigners continue to be sellers in the market, as during the week they sold equities worth $8.39 million. This selling was largely absorbed by companies, mutual funds and insurance sector as they net purchased equities worth $2.35 million, $1.39 million and $1.44 million respectively s of yesterday.

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