KSE100 Index (closed at 43,204 down 26 pts) ended flat continuing its weak trend and meagre trading activity. PSX will be closed tomorrow on 23rh Mar. Market participants will mostly focus on rolling over positions on the 'futures' counter. 'Foreigners' appear to be consistent sellers in 'Banks' after the FATF ruling in the first week of March. In general things are set for a stable market as redemptions pressure on Mutual Funds appears to have been over. Things would be clearer next week as no confidence move against the PM takes shape.
Yields were up again in today's TBill auction. Cut off yields rose by 40 bps to 55bps. 6M TBill cut off yield came at 12.50%, up by 40bps
Continuing worry for our public finances managers is rising oil prices and defending the recently announced relief package with the IMF. There appear to be positive tones on that front. But renewed upward trend in Oil prices is something that does not allow the Government of Pakistan any space to not to allow passing on to the consumers real energy cost.
Oil prices have become event dependent. Fist the Kazakhstan unrest forced Oil prices upward and later on sanctions of Russian oil after the Ukraine invasion has made the markets gone haywire.
Brent today again downward trading at $114, after having traded close to $120 yesterday. From its high of $135 just after Russian sanctions it had come back to $100 level on the hopes of diplomatic resolution of the Ukraine crisis. It appears that things will yo-yo on this for a while.
