Karachi: The KSE-100 Index saw a modest weekly gain of 0.2%, touching an all-time high of 81,940, driven by recent positive developments in Pakistan’s financial negotiations with the International Monetary Fund.

According to JS Global, the index experienced a high during the week but faced a correction on the last trading day, dropping by 2.1%. The overall weekly closure was at 80,118 points, bolstered by a 5.6% increase in trading volume compared to the previous week. Foreign investors showed confidence in the market, contributing net inflows of $9.3 million.

On the economic front, the current account deficit reported a notable improvement, standing at $329 million for the fiscal year, marking the lowest in thirteen years and just 0.2% of the GDP. The Large Scale Manufacturing (LSM) index also showed a promising increase, with a year-on-year growth of 7.33% for May, the highest since June 2022. Additionally, the banking sector witnessed a 22% rise in deposits year-on-year, reaching Rs31 trillion, supported by a continued high policy rate.

However, the government made adjustments in fuel prices, with petrol and high-speed diesel seeing increases of Rs9.99 and Rs6.18 per liter, respectively, in response to the global rise in oil prices. The State Bank of Pakistan’s reserves remained stable at $9.4 billion week-over-week, providing some stability in the financial outlook. The textile sector also saw a slight increase in exports, totaling $16.7 billion for the fiscal year, up by 0.9% year-on-year.