Karachi: The Karachi Stock Exchange’s KSE-100 index closed the week range-bound, experiencing modest week-on-week losses of 0.7%, ending at 78,045 points. The market saw a late-week uptick driven by the anticipation of forthcoming economic policies and adjustments in global market indices.

According to JS Global, the slight recovery in the KSE-100 was fueled by investor optimism regarding the expected announcement of single-digit inflation rates for the first time in three years, potentially prompting a policy rate cut at the upcoming monetary policy meeting in September 2024. This optimism contributed to a 12% increase in average weekly turnover in terms of shares traded.

During MSCI’s quarterly review, significant changes were noted: SAZEW was upgraded from the MSCI Small Cap Index to the MSCI Frontier Markets Index. Additionally, six stocks were added to the Small Cap Index, with two being removed, reflecting ongoing adjustments in market valuations and investor portfolios.

On the economic front, the State Bank of Pakistan reported a $119 million week-on-week increase in foreign exchange reserves, now totaling $9.2 billion. Domestically, the government’s reduction of petrol prices by Rs8.47 per liter and diesel by Rs6.7 per liter for the current fortnight was seen as a move to relieve financial pressure on consumers.

However, the Large Scale Manufacturing (LSM) sector showed flat year-on-year growth of 0.92%. The auto sector, monitored by PAMA, indicated a significant 36% month-on-month decline in sales, although there was a 70% increase year-on-year from a lower base, suggesting a volatile recovery phase.