KARACHI: The stock market is likely to move with the proposals made by the government in the mini-budget expected to submit this week.
The benchmark KSE-100 index of Pakistan Stock Exchange (PSX) increased by 0.5 per cent on week on week (WoW) basis, said analysts at Topline Securities.
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Major events during the outgoing week were:
1) SBP governor in an interview stated that they are ready to pause interest-rate increases to preserve economic recovery after making Asia’s most aggressive rate hikes (275 basis points in total) in three goes since September 2021
2) Current account deficit for the month of November 2021 clocked in at $1.91 billion (vs. October 2021 current account deficit of $1.76 billion)
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3) textile export for the month of November 2021 clocked in at $1.736 billion (vs. October 2021 textile export of $1.6 billion)
4) SBP raised Rs158 billion on Wednesday against the target of Rs100bn by selling fixed-rate Pakistan Investment Bonds.
4) statement from the Ministry of Finance that the sixth review of the Extended Fund Facility (EFF) would be presented to the International Monetary Fund (IMF) board on January 12, 2022.
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5) government has decided to submit two bills before the parliament next week for abolishing sales tax exemptions, raising withholding tax on the telecom sector, and granting autonomy to the SBP, as part of prior action of IMF program
6) the federal government has only managed to collect 7 per cent of the petroleum levy collection target in the first five months of FY22 and
7) foreign exchange reserves held by the central bank fell by $415 million on a weekly basis to $18.15 billion as of December 17, 2021.
