Karachi: The KSE-100 Index concluded the week with a 0.3% loss, settling at 79,944 points, influenced by political shifts and mixed economic indicators. A Supreme Court ruling significantly impacted the government's composition in the National Assembly, contributing to market instability.

According to JS Research, the ruling led to a reduction in the government and its coalition partners' representation from 68% to 62% in the National Assembly, echoing in the financial market's performance. Trading volumes fell slightly by 0.3% week-over-week, although the value of trades in US dollars rose by 14%. Foreign investors were net buyers, contributing a net inflow of $4.0 million.

In the bond market, Treasury bill cut-off yields saw a modest decrease, but yields for Pakistan Investment Bonds remained steady. Remittances from overseas workers maintained a robust level, surpassing $3 billion for the second consecutive month, a 44% increase from the previous year. Furthermore, the State Bank of Pakistan's foreign exchange reserves reached a two-year peak of $9.4 billion.

Reports indicate that the government is optimistic about progressing negotiations with the International Monetary Fund for a new Extended Fund Facility, with expectations of finalizing terms and reaching an agreement within the month.