Karachi: The Karachi Stock Exchange’s benchmark KSE-100 index recorded a historic closing high of 90,864 points on Tuesday, finishing the week at 90,859 points, up by 0.96% week-on-week. The surge was driven by robust corporate earnings and the anticipation of continued monetary easing.
According to AKD Securities Limited, the market’s strong performance coincides with Pakistan’s report of a PkR1.7 trillion quarterly budget surplus, the first in over two decades, during the first quarter of FY25. However, the government fell short of meeting two of the IMF’s quarterly targets, with a tax collection deficit of PkR90 billion and a cash surplus shortfall of PkR182 billion among the provinces. The Consumer Price Index (CPI) for the month registered at 7.2% year-on-year, with the real interest rate remaining comfortably above 10% at the current policy rate levels.
On the trade front, October’s trade deficit stood at US$1.4 billion, with exports totaling US$2.97 billion, marking a 4.9% increase month-over-month. The State Bank of Pakistan’s foreign exchange reserves grew by US$116 million week-over-week, ending at US$11.15 billion as of October 25, 2024.
The Pakistani Rupee remained stable against the US dollar throughout the week, closing at 277.7. Key developments included the Prime Minister’s visits to Saudi Arabia and Qatar, an upcoming US$1.2 billion oil facility agreement with Saudi Arabia in December, and Germany’s request for the Chief of Army Staff’s assistance in a deal termination with Independent Power Producers.
Pharmaceutical, Woolen, and Leasing Companies led sector performance, recording gains of 7.6%, 7.4%, and 7.3% week-over-week, respectively. Conversely, Investment Banks, Investment Companies, and Securities Contractors, along with Leather and Tanneries and Engineering sectors, underperformed, witnessing the sharpest declines. Banks and Development Financial Institutions led selling activities, while Insurance and Mutual Funds were the primary buyers.
Notable stock performers included GLAXO, CHCC, NCPL, SYS, and KAPCO with significant weekly gains, whereas KOSM, NBP, PKGS, MUGHAL, and SRVI were among the week’s laggards.