KARACHI (62 News) – The research analysts and market observers were caught by surprise after the central bank increased the interest rate after 20 points which led to consolidation in the equity market.
Consolidating amidst results announcement, amplified corporate actions and selective investor sentiment following (a surprise) start to monetary tightening by the SBP, the KSE-100 index shifted shed half a percent, closing the week at 44,301 points.
Emerging clarity on the political front, controlled CPI read for Jan’18 (clocking in at 4.42%) and bullish sentiment on Commercial Banks mitigated FIPI outflows during the week.
Key news flows during the week were:
1) Tahirul Qadri announced that his party has shelved its strategy of protests on the Model Town incident
2) Contrary to the market expectations, the SBP raised the policy rate (target) by 25 basis points to 6.0 percent, citing escalating inflationary pressures and tightening stance by other central banks as the justifications for the hike
3) The Election Commission of Pakistan announced that polling for the Senate election will be held on Mar 03’18, as the term for 52 incumbent legislators concludes
4) Drug Regulatory Authority of Pakistan notified new drug prices with upward revisions in accordance with Drug Pricing Policy 2015,
5) The Finance Ministry notified increased price of petrol by Rs 2.98 per liter to Rs 84.51 per liter while the price of HSD has been increased by Rs 5.92 per liter to Rs 95.83 per liter.
The coming week is likely to remain lackluster amid a lack of immediate triggers however any positive surprises in the ongoing result season could ignite interest in select scrips/sectors.