Karachi: The KSE-100 index experienced modest gains this week, increasing by 0.5% as investors focused on several upcoming economic indicators that could impact market dynamics. Notable developments included expectations for the IMF board’s approval of an Extended Fund Facility (EFF) and potential foreign outflows due to the FTSE index rebalancing.

According to JS Global, the market was influenced by a variety of economic data points this week. The Consumer Price Index (CPI) for August 2024 reported a 9.6% increase, marking the first single-digit inflation rate in three years and maintaining real interest rates around 10 percentage points. A significant drop in international oil prices, which have declined by 20% since early 2024, also played a crucial role in market sentiment. Additionally, the government successfully raised Rs835 billion from Treasury Bills, exceeding its auction target without reducing cut-off yields.

Further influencing the market were reports on trade and industry metrics. The trade deficit contracted to US$1.68 billion, the lowest in 11 months, while cement dispatches in August fell by 26% year-over-year, with a cumulative decline of 18% in the first two months of the fiscal year 2025 due to high prices. Petroleum oil lubricant sales also saw a 14% decrease compared to last year. In the corporate sector, Kohat Cement’s announcement of a buyback of up to 12 million shares, representing about 20% of the stock’s free float, led to the stock closing at its upper circuit for two consecutive days. State Bank of Pakistan reserves remained stable at US$9.4 billion throughout the week.

These various factors are shaping the market’s outlook as stakeholders anticipate further economic shifts that could influence investment strategies and market performance.