This week, the KSE-100 index declined for a seventh straight week, falling 3.6% or 1,547points WoW, and closed at the 41,315 level.

In terms of US dollars, the index declined by a notable 2.72% from last week.

The market commenced the week on a positive note on hopes of resumption of IMF program as the government removed subsidy partially by increasing fuel prices by Rs30 which was the prerequisite for concluding the IMF tranche.

As a result, rupee exhibited a recovery against the greenback, closing the week at Rs197.92 a US dollar.

However, a massive rise in inflation pace, rapid depletion of forex reserves, and a continued surge in T-bill yields, all indicated a further hike in interest rate which dampened investors’ sentiments. Likewise, Moody’s decision to downgrade Pakistan’s outlook from stable to negative, citing “heightened external vulnerability” and uncertainty around securing external financing to meet the country’s needs was another major reason behind the selling pressure in the PSX.

Moreover, the jump in NSS rate by up to 150bps and the announcement of another Rs30 per liter increase in fuel prices instigated panic among the investors.

Overall, the bourse witnessed 2 sessions in favour of bull while the 3 sessions were in favour of bear. The KSE-100 index oscillated between high and low of 43,339 & 41,145 levels, respectively, before settling the week at 41,315 levels.

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