KARACHI: The benchmark KSE-100 Index gained 16 percent during July 2023. This is the best monthly gain after 39 months in PKR and in US$. The KSE-100 Index closed above 48,000 level after 24 months.
Better-than-expected IMF loan, timely compliance with the IMF conditions, expected foreign investment coming from Gulf countries and clarity on the upcoming elections has revived interest in Pakistan equities, Muhammad Sohail, leading analyst and CEO of Topline Securities said.
Moreover, investor confidence received a boost from the development of Saudi Arabia’s investment in the refinery project in Pakistan, alongside progress towards Reko Diq mining project and expected resolution of the circular debt issue, he added.
He said besides inflows from IMF, new loans and rollover from China, UAE and Saudi Arabia has resulted in Pakistan FX reserves doubling from $4.5 billion in June 2023 to $8.2 billion as of July 21, 2023.
Pakistan market remained second Best Performing market after Turkey in the month of July 2023.
Key stocks of KSE-100 index that outperformed market during the month included Unity Foods (UNITY) up 69 percent, Honda Car (HCAR) up 54 percent, and Meezan Bank (MEBL) up 53 percent.
Banking sector led the rally with PSX banking sector Index rising by 33 percent. Meezan Bank (MEBL) outperformed peers with a gain of 53 percent followed by United Bank (UBL) of 39 percent and Bank Alfalah (BAFL) of 34 percent in the month of July 2023.
Market volumes have also improved with average daily value rising to Rs 11.7 billion a day in cash market versus last 12 month average of Rs 6.6 billion. Whereas in futures market value was Rs 5.0 billion a day compared to 12 month average of Rs 3.5 billion a day.
Copyright Business Recorder, 2023
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