Good build up by PSX on yesterday's historic performance. KSE100 Index today added 262 points closing at 46,407 up 0.6%. Traded volume just slightly less today remaining 493mn shares. Market was mostly in red till 1pm. Foreigners were as usual net sellers in Banks. Good activity by 'Individuals' after a long time. Mutual Funds just slightly net sellers today. YTD Funds have been net sellers of more than $66mn worth of shares. Insurance sectors another major seller have year to date have net selling of over $16mn.
Rupee gained further against US dollar and was up by 90 paisas.
The annual inflation rate in the US rose to 8.5% in March of 2022. This is the highest since December of 1981. In February before the impact of high oil prices following Ukraine war the inflation was recorded 7.9%, i.e. at 40 years high. Market expectations for March 2022 was 8.4%.
Core reading was however below expectations, indicating that inflation could be peaking. DJI added 100 points on that after yesterday's decline.
Brent at $104.5 up 6.2%. OPEC warned it would be nearly impossible to replace Russian oil lost by a possible ban from the EU.
Sri Lanka has defaulted on $51bn external loan. Sri Lanka had run out of foreign reserves and recently exams were canceled for want of exchange for import of papers. In addition to un-sustainable debt level and an exchange rate policy that was at odd with the reality, Sri Lanka had its tourism revenue hit by Covid. International rating agencies had downgraded Sri Lanka last year blocking its access to international capital markets. See this tweet. and this tweet.
South Korea to lobby for inclusion in MSCI developed market index. South Korea is Asia's fourth largest economy. The absence of an offshore currency market for the won has been one of the main obstacles South Korea to be included in MSCI developed market index. Korea may extend trading hours and allow overseas FX dealers to participate in the market to qualify for inclusion. There are however concerns USD/KRW spot market could increase volatility at a time when rising interest rates and the Ukraine war is an added uncertainty. See News.