Karachi, The Karachi stock market concluded its trading week on a high note, with the benchmark index reaching a record closing of 70,909 points on Friday, marking a weekly gain of 595 points or 0.85%. This surge occurred despite ongoing global tensions and fluctuating international crude prices, influenced by conflicts in the Middle East, particularly between Iran and Israel.
According to AKD Securities Limited, trading volumes for the week rose significantly by 43.51%, totaling 2.46 billion shares compared to 1.72 billion shares the previous week. The stock market's performance was partly buoyed by the positive impact of a Saudi delegation's visit, which promised major investments across various sectors and a potential US$1.0 billion acquisition of a 25% stake in the Reqo Diq Mining project.
The market's volatility was also influenced by several key economic events. Notably, Pakistan successfully repaid a US$1.0 billion Eurobond on April 12, which impacted the State Bank of Pakistan's foreign exchange reserves, stabilizing them at US$8.0 billion. Additionally, fluctuations in fuel prices, with significant increases in motor gasoline and diesel, reflected rising crude oil prices.
In sector performance, Sugar and Allied Industries, Refinery, Synthetic and Rayon, Vanaspati and Allied Industries, and Textile Weaving led the gains, while sectors such as Miscellaneous, Woolen, and Paper and Board saw declines. The week also highlighted net selling by individuals and banks, with brokers absorbing much of the local selling pressure.
Major company performers included PSX, which saw an impressive 16.6% week-over-week increase, followed by FABL, FATIMA, AKBL, and NRL. Conversely, companies like PTC, ISL, KTML, SEARL, and MUGHAL faced the steepest declines.
The report also pointed to significant developments such as shortfalls in Pakistan Investment Bonds sales and progress in a gas pipeline project with Iran, indicating a dynamic economic landscape. Additionally, concerns about the wheat production target due to rainfall further complicated the economic forecast, with the government downplaying the potential for significant currency devaluation.