PakStox Outlook

Brent crude futures fell 2.9% to settle at $82.63 on Friday, and marked the second consecutive weekly loss, down 2.8%. A stronger dollar and concerns about China's economic outlook applied downward pressure on prices, countering the effects of tighter supply. The dollar's value increased after unexpectedly strong U.S. labor market and manufacturing data earlier in the week, reducing demand for dollar-denominated oil from buyers using other currencies. Additionally, recent data indicated that China's economy grew by a slower-than-expected 4.7% in Q2, intensifying worries about oil demand from the world's largest importer.

The KSE100 Index made a significant decline of 1,722 points (-2.1%) and closed at 80,118. Some political comments and Fitch's remarks on the possibility of an interim change sparked the decline. Even as the market declined, there was a good amount of net buying by foreign corporates, around $1.4 million. Strangely, today overseas investors made a massive net buying of over $3.7 million. My sense is that this sudden burst of activity by overseas Pakistanis is on account of local owners routing their acquisitions through foreign accounts. Also noteworthy is the net buying by local mutual funds, amounting to $2.2 million. The decline in the market is probably due to massive net sales by insurance companies, who sold close to $10 million worth today. DG Khan Cement to establish a subsidiary in the US to be named DG Cement US LLC. Read More PTC announced second quarter results for the period ending 30 Jun 2024. Earning per share came at Rs 0.14 compared to Rs. 0.3 same period last yea...

On IMF deal the KSE100 Index rises 1251 points closing at  81,155 up 1.52% Good amount of net buying by Foreign Corporates of around $3 million. Local mutual funds were also net buyers of close to $1 million bucking their recent trend. The sharp upward trend may put a stop at redemption pressure on the local funds. The recent persistent trend of higher inflation and higher oil prices is dampening hopes of further rate cuts. Otherwise, the absence of selling pressure at the Pakistan Stock Exchange (PSX) was enough to sustain the bullish trend.