Current Account Deficit (CAD) for FY24 was reported at US$681
million, down 79%YoY.
The issue of the IPPs agreements came into the limelight in
the background of rising electricity prices across the country, hefty capacity
payments, and uncontrolled circular debt, prompting government to order audits
of several IPPs.
Concurrently, MS and HSD fuel prices were increased in the
last fortnightly review.
On the external front, Textile and food export for FY24 were
reported at US$16.7 billion and US$7.4 billion, up 1% and 47%YoY.
Petroleum imports dropped by 1%YoY to US$16.9 billion in
FY24.
Average daily trading volume was up 5.6%WoW to 463.55 million
shares as compared to 438.83 million shares a week ago.
Foreign exchange reserves by State Bank of Pakistan (SBP)
increased by US$19 million on a weekly basis to US$9.42 billion as on July 12,
2024.
On the currency front, PKR appreciated by 0.1%WoW to close
at 278.13/ US$ on Friday.
Other major news flow during the week included: 1) Cement
dealers announced strike to protest high taxes, 2) Refineries held back US$5 billion
investments over tax exemption dispute, 3) Moody’s said IMF deal to improve
funding prospects for Pakistan, 4) IMF announced Pakistan economy likely to
grow at 3.5% in FY25 and 5) GoP to consult UAE on PARCO.
Close-end Mutual Fund, Automobile parts & Accessories,
Property and Vanaspati & Allied Industries were amongst the top performing
sectors, while, Tobacco, Jute, Textile Weaving and Power Generation &
Distribution were amongst the worst performers.
Major net selling was recorded by Insurance companies with a
net sell of US$7.66 million. Foreigners absorbed most of the selling with a net
buy of US$9.33 million.
Top performing scrips of the week were: AVN, THALL, JVDC, SNGP
and EFUG, while laggards included: PKGP, PAKT, GADT, NBP and INIL.
According to AKD Securities, the positive sentiments are anticipated
to persist due to the market's attractive valuations, staff level agreement
with IMF and constant foreign inflow into equities.
However, escalating political tensions could dent investors’
confidence. Meanwhile, market participants’ focus would remain on upcoming corporate
results, inflation figures and the next Monetary Policy Committee.