Bloodbath at PSX and growth expectations
5 Dec, 2021
On Market Front
This week, the market lost 881 points to close at 43,233 points. The market witnessed a bloodbath on Thursday, one of the highest intraday drop -4.71% in the history of PSX. Investors reacted to the widening trade gap, inflation hitting the double-digit figure of 11.5%, and rupee depreciation against the dollar. The PIB rate increased, which further signals an interest rate hike.
LOCAL BANKS, GLOBAL PRESENCE
Habib Bank Limited (HBL: ) and Diamond Trust Bank Kenya Limited (DTB) have partnered together to serve Chinese enterprises operating in the East African Market HBL is the only Pakistani bank to have branches in China and only one of the three banks from South Asia and the MENA region to offer end-to-end RMB intermediation.
On Economic Front
In a tweet on Saturday, Shaukat Tarin announced that SBP has received USD 3bn from Saudi Arabia under a loan agreement. Although this inflow will momentarily address the falling rupee, it is said that the USD 3bn loam came with stringent terms. As per the agreement all terms are confidential and cannot be revealed without the consent of both parties.
20 BILLION DOLLAR TARGET
In November, textile exports were up 36% compared to the same period last year. With the ongoing USD 3.5 billion expansion plan for the textile industry, Pakistan’s textile exports will likely increase by USD 6bn and cross the USD 20bn target projected for the fiscal year 2021-22.