Karachi: The stock market exhibited remarkable strength this past week, with the KSE-100 index closing at an all-time high of 89,994 points, marking a 5.6% rise from the previous week and the highest weekly return in 27 weeks. The KSE30 index also reached a new peak at 28,395 points. The market's positive trajectory was fueled by the resolution of political uncertainties with the passage of the 26th Constitutional Amendment and buoyed by favorable corporate earnings and economic developments.
According to AKD Securities Limited, the rally was broad-based with significant contributions from the Fertilizer, Cement, and Banking sectors, adding 1,312, 929, and 847 points to the index, respectively. This performance was underpinned by robust annual growth in company results. Additionally, the current account maintained a surplus for the second consecutive month at US$115 million in September 2024. The State Bank of Pakistan's foreign exchange reserves also saw an incremental increase, totaling US$11.0 billion as of October 18, 2024.
Market participation showed a notable increase with the average daily traded volume up by 23% to 532 million shares. The Pakistani Rupee held steady against the US dollar, ending the week at 277.6. Other significant developments included a 42% year-over-year increase in IT exports and a 19% rise in banking sector deposits, totaling PKR 31.3 trillion. The National Electric Power Regulatory Authority approved key adjustments to Karachi Electric's generation tariff, influencing sector dynamics.
In terms of sector performance, Cement, Refinery, and Mutual Funds led the gains, whereas Modarabas, Textile composites, and Vanaspati and allied industries faced declines. Notable stock movements included KOHC and CHCC, which saw significant increases, while ILP and PIBTL experienced the largest drops.
The market outlook remains positive with anticipation building around the upcoming Monetary Policy Committee meeting, where a potential rate cut could stimulate further growth. Despite recent advances, market valuations are still attractive, offering an entry point for investors focused on high-dividend-yield stocks expected to benefit from monetary easing and structural reforms.