Karachi: The KSE-100 index concluded this week on a high note, securing a gain of over 700 points, equivalent to a 0.9% increase week-over-week, to close at 78,801. This upward trend was bolstered by a positive performance in the Large Scale Manufacturing (LSM) sector and anticipations of a new financial aid package from the International Monetary Fund (IMF).

According to JS Global, the Large Scale Manufacturing sector reported a year-on-year growth of 0.92% during FY24, contributing to the positive trajectory of the stock market. Additionally, Pakistan’s current account deficit narrowed significantly to US$162 million in July 2024, marking a 78% year-on-year decrease, largely due to reduced primary income deficits and a shrinking trade imbalance, which reached a 22-month low.

The market also reacted favorably to the results from the latest T-Bills auction, where cut-off yields saw a substantial drop across various tenors, further fueling investor optimism. Concurrently, Finance Minister Muhammad Aurangzeb expressed confidence in securing a new US$7 billion loan agreement with the IMF by September, noting promising discussions with the Fund. This sentiment has evidently influenced the bullish momentum observed in the Pakistan Stock Exchange over the week.