The KSE100 lost 1323pts this week to close -2.8pc at 45242. Average Turnover fell 22pc to 166mln shares while value traded 15pc to Rs.9.3bln. It was a rough week with the market plunging 1900pts on Panama JIT woes on Monday. As if political volatility was not enough, the SBP performed a de facto devaluation, letting the Rupee lose 3.5pc in a single day, citing economic necessity. The stock market largely applauded the devaluation with IPP's, Textiles and E&P's surging in appreciation. Bizarrely, the Finance Minister stepped in, reversing the currency depreciation, blaming it on 'miscommunication' between institutions and individuals. Overall political instability, coupled with sharp movement of the currency, sends all the wrong signals to investors. We opine, prolonging of this situation much longer will upend the solid EPS growth story that Pakistan offers.
ENGRO, PPL, PIBTL, MLCF, DFML were top performers this week. During the week Engro announced a board meeting on July 10 which will likely discuss business strategy vis a vis the huge cash reserves the company is sitting on. PIBTL announced commencement of commercial operations and PPL notified Sui wellhead gas prices Foreign outflow during the week was USD5.8mln.
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