KSE 100 index posted another gain today. It increased by 256 points (+0.6%) today, closing at just 25points shy of 44k level. Market had moved strongly since morning and gained over 500 points before correcting a bit. The move is notable for the fact that roll over is next week. Market is primarily reacting to oversold state and absence of any selling pressure.
There was high participation in the PIB auction today. Raised amount of Rs 192bn against target of Rs 100bn. Yields increased +88pbs to 115bps, reflecting higher yield in TBill auction this week. The 3 years cut off yield was 11.85%. There are healthy signs that the money market may be expecting inflation coming down from recent highs. This depends primarily on oil prices going forward.
Rupee continues to be weak. Today it reached an all time high of 179.44 rupee to a US dollar. Rupee has declined more than 12% in this financial year.
Oil trading downwards. Brent around $98. Experts expect that in case of some diplomatic settlement on the Ukraine front, oil may come down to $80-85 level.