Karachi: The KSE-100 index showcased a robust performance this week, touching an intraday high above 90,000 levels and closing at 89,994, reflecting a week-over-week increase of 5.6%. This bullish trend was supported by a notable rise in average trading volumes, which surged 52% to 670 million shares.
According to JS Global, several significant economic and legislative developments contributed to the market's strong performance. The week was marked by the passage of the 26th Constitutional Amendment Bill in the National Assembly, which achieved a two-thirds majority. This was followed by the nomination of Justice Yahya Afridi as the next Chief Justice of Pakistan. Additionally, Pakistan reported a current account surplus for the second consecutive month in September 2024, totaling US$119 million. The net Foreign Direct Investment (FDI) for the first quarter of FY25 also saw an increase, rising by 48% year-over-year to US$771 million.
The Pakistani government has been active on the international front, formally requesting US$1 billion from the International Monetary Fund (IMF) as part of a climate financing fund. Talks are also in progress with the Asian Infrastructure Investment Bank (AIIB) regarding credit enhancement for the planned issuance of Panda Bonds, expected to raise up to US$250 million. Domestically, the government is adjusting agreements with 18 independent power producers (IPPs) to a 'Take and Pay' model, signaling further reforms in the energy sector.
The auto financing sector has started to show signs of recovery, registering an increase of Rs245 million month-over-month, after 27 months of consecutive declines, primarily due to recent monetary policy easing. The State Bank of Pakistan's (SBP) reserves have remained stable at US$11 billion, with a slight weekly increase of US$18 million.