Equities: Flood Risks & Political Uncertainty
- The KSE-100 index experienced a positive month in July 2024, registering a ample 6.5% increase.
- Several key economic indicators painted a mixed picture during July.
KSE-100 Index performance: July 2024 - A Thorough Review
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What Happened: July 2024 market Overview
The KSE-100 index experienced a positive month in July 2024, registering a ample 6.5% increase. This growth was largely fueled by institutional buying. Though, the week-on-week performance presented a more nuanced picture, with a 0.6% decline (875 points) attributed to profit-taking and the influence of external factors, notably widespread flooding and ongoing political uncertainty.
Key Economic Indicators in July 2024
Several key economic indicators painted a mixed picture during July. The Consumer Price index (CPI) rose to 4.1%, indicating increasing inflationary pressures. Remittances, a crucial source of foreign exchange, decreased by 6% month-on-month to $3.2 billion, although they remained 7% higher year-on-year. A bright spot was the automotive sector,with car sales increasing by a meaningful 28% year-on-year,reaching 11,034 units,despite a 49% month-on-month drop. Pakistan also received a positive signal with a credit rating upgrade from Moody’s, moving from Caa2 to Caa1 with a stable outlook. However, the current account shifted to a deficit of $254 million, a reversal from the $335 million surplus recorded in July 2023.
| Indicator | July 2024 | June 2024 | July 2023 | Change (MoM) | Change (YoY) |
|---|---|---|---|---|---|
| KSE-100 index | 148,618 | N/A | N/A | +6.5% | N/A
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