KARACHI: Pakistan stocks recorded a three per cent decline during the week owing to massive decline in foreign exchange reserves.
Analysts at Topline Securities said that the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) declined by 3 per cent on Week on Week (WoW) basis, this decline can largely be attributed to declining foreign reserves ($10.3 billion reserve with SBP as of May 6, 2022) and lack of clarity on government`s intent in implementing IMF`s demand on which the revival of Extended Fund Facility (EFF) program is contingent: removal of subsidy on petroleum products, increase in electricity tariff etc.
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Lukewarm response from friendly country Saudia Arabia to official delegation from Pakistan, where the Kingdom reportedly tied $3 billion additional support to revival of IMF program, further dampened investor sentiment.
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Average traded volume and value for the week stood at 274 million shares and Rs.8.1 billion respectively.
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On flows end during the outgoing week individuals, mutual fund, insurance and foreign corporate net sold equities worth $7.55 million, $3.84 million, $3.03 million and $1.24 million as of yesterday, this selling was largely absorbed by banking sector as they purchased equities worth $12.27 million as of yesterday.
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