Karachi: The KSE-100 Index concluded a week of strong performance, closing at its highest weekly level of 85,483 points, reflecting a 2.3% increase from the previous week. This rise was supported by an average trading volume surge of 52%, reaching 523 million shares.

According to JS Global, despite experiencing significant foreign capital outflows approximating US$23 million, the market’s buoyancy was largely attributed to substantial purchases by local entities, particularly mutual funds and insurance companies. This local buying was catalyzed by a series of positive economic developments, contributing decisively to the market’s robust performance.

Highlights from the week included the termination of five independent power producer (IPP) contracts, among which was the base plant operated by HUBCO. The week also saw a high-profile visit by a Saudi delegation to Pakistan, during which memorandums of understanding valued at US$2.2 billion were signed across various sectors. The Reko Diq mining project also made significant progress with the announcement from the Saudi Minister of Investment that Manara Minerals is set to acquire a stake in the venture.

In regulatory developments, the Oil and Gas Regulatory Authority (OGRA) proposed an increase in margins for oil marketing companies by about Rs1.35 per liter. Furthermore, the Pakistan Automotive Manufacturers Association (PAMA) reported a rise in automotive numbers for September 2024, showing a 23% year-on-year increase and a 20% month-on-month growth.

On the financial front, remittances totaled US$2.85 billion, marking a 29% year-on-year increase, although there was a slight month-on-month decrease of 3%. Additionally, the State Bank of Pakistan’s reserves saw an uptick, with an increase of US$106 million, totaling US$10.8 billion.