Karachi: The KSE-100 index showed a notable increase of over 865 points this past week, concluding at 90,860, demonstrating a 1% growth week-over-week. This positive movement contrasts with a 17% decline in average trading volumes, which stood at 559 million shares.

According to JS Global, the market's upward trend was supported by a net foreign buying of $2 million, reversing recent weeks of foreign selling. The week also reported an inflation rate of 7.2% for October 2024, marking a 2% month-over-month increase. A noteworthy development is Pakistan’s primary surplus of Rs 1.7 trillion during the first quarter of FY25, a result not seen in the last two decades, primarily fueled by increased profitability from the State Bank of Pakistan.

Further bolstering investor confidence were several memoranda of understanding signed with Saudi firms during Prime Minister Shahbaz Sharif's visit to Saudi Arabia, including promising discussions with the Saudi Crown Prince. Additionally, the Asian Development Bank is expected to inject $2.75 billion into Pakistan over the next four years, with an anticipated $800 million during FY25. The recent Treasury bill auction also saw a decline in yields between 64 to 120 basis points, suggesting market anticipation of a potential rate cut at the upcoming monetary policy committee meeting scheduled for November 4, 2024. Meanwhile, the State Bank’s reserves increased by $115 million, totaling $11 billion. However, the government fell short of its revenue collection target by approximately Rs 196 billion for the first four months of FY25.