Karachi: After a challenging start due to global market fluctuations and unexpected monetary policy shifts abroad, the KSE-100 index rallied late this week, ending with a modest overall gain. The rebound was largely driven by robust performances in the Oil & Gas Exploration sector, particularly from Mari Petroleum, coupled with encouraging economic indicators such as a surge in worker remittances.

According to JS Global, the market’s early-week struggles were influenced by a surprise interest rate hike by the Bank of Japan, which initially sent ripples through global markets impacting the KSE-100. However, strong earnings reports within the Oil & Gas sector, notably Mari Petroleum’s significant dividend payouts and a substantial bonus share issuance, helped the index recover. The sector was further buoyed by news of the government’s plans to divest stakes in major entities like OGDC and PPL to Global Capable Companies, igniting investor interest and market activity.

Other positive developments contributing to the week’s recovery included a dramatic 48% year-over-year increase in worker remittances, reaching US$3 billion in July, and noticeable reductions in cut-off yields for various tenors in the latest Treasury Bill auction, enhancing the attractiveness of local debt instruments. These factors collectively contributed to a 0.4% week-over-week gain in the KSE-100, with average daily trading volumes up by 38%.