Karachi: The KSE-100 index closed slightly higher this week, gaining 173 points or 0.22%, finishing at 80,117 points as market optimism following a new agreement with the IMF was tempered by ongoing political and economic uncertainties.
According to AKD Securities Limited, the market opened strongly at the beginning of the week buoyed by the announcement of a US$7 billion Extended Fund Facility program with the IMF. However, persistent political tensions and concerns over opposition party bans contributed to market volatility, culminating in a mixed close on Friday. The current account deficit for the fiscal year was notably reduced by 79% to US$681 million, reflecting significant economic adjustments.
The week also spotlighted the government’s audit orders for several Independent Power Producers (IPPs) amid escalating electricity prices and soaring circular debt, which could affect future pricing structures and financial stability. Domestic fuel prices were adjusted upward, with petrol and high-speed diesel increasing by PKR 9.99 and PKR 6.18 per liter, respectively.
On the international front, exports in textiles and food witnessed an increase, contributing US$16.7 billion and US$7.4 billion respectively, showing growths of 1% and 47% year-over-year. Conversely, petroleum imports slightly declined by 1%, amounting to US$16.9 billion for the fiscal year.
Trading volumes showed an upward trend, with an average daily volume of 463.55 million shares, up by 5.6% from the previous week. The State Bank of Pakistan's foreign exchange reserves saw a marginal increase of US$19 million, reaching US$9.42 billion. The Pakistani Rupee also appreciated marginally against the US dollar, closing at 278.13.
The report highlights various sector performances and notable corporate movements during the week. Cement dealers announced a strike protesting high taxes, and refineries threatened to hold back $5 billion in investments due to tax exemption disputes. Moody's commented positively on the economic implications of the IMF deal, projecting an economic expansion of 3.5% in FY25.