Karachi: The KSE-100 Index ended a five-week losing streak, gaining 4,034 points or 2.5% week-on-week to close at 166,409, buoyed by optimism surrounding progress in peace talks. Trading volumes saw a significant increase, averaging 600 million shares, up 53% from the previous week, while the traded value rose 19% to Rs23 million.

According to JS Global, Brent crude prices remained volatile, closing the week above $117 per barrel, compared to the previous week's average of approximately $111.4 per barrel. Domestically, petrol and high-speed diesel prices increased to Rs267.13 per liter and Rs293.12 per liter, respectively. In monetary policy developments, the State Bank of Pakistan raised the policy rate by 50 basis points to 12%, citing heightened inflation risks due to elevated energy prices amid geopolitical tensions. The central bank, however, retained its fiscal year 2027 GDP growth target at 3.5-4.5% and projected remittances to reach $45 billion during the fiscal year.

The State Bank of Pakistan also aims to boost foreign exchange reserves from the current $21.5 billion to $25 billion by June 2027, enhancing import cover to four months. Additionally, the country is considering raising $500 million through a second Panda bond issuance in the second half of fiscal year 2027. Reflecting the recent policy rate adjustment, Treasury bill cut-off yields increased by up to 61 basis points across all tenors, with the government raising Rs1.913 trillion against a target of Rs1.65 trillion.