Karachi: The KSE-100 index concluded the week on a positive note, marking a gain of 435 points or 0.55% week-over-week, buoyed by the Monetary Policy Committee’s unexpected 200 basis points cut in the policy rate to 17.5%. This decision came in response to a higher-than-anticipated drop in inflation, which spurred investor confidence and drove significant market activity.

According to AKD Securities Limited, the rate cut was well-received by the market, particularly energizing the cyclical sector and contributing to the index’s robust close at 79,333 points. The IMF’s confirmation that Pakistan has met the financing assurances needed for a scheduled executive board meeting on September 25 further bolstered market sentiment.

The week also saw varied sector performances with Leather & Tanneries, Woollen, Tobacco, Pharmaceuticals, and Property sectors recording strong gains, while Leasing companies, Modarabas, and Automobile parts & Accessories sectors faced declines. The market’s average daily traded volume dipped by 10.2%, indicating a slight decrease in participation.

In currency developments, the Pakistani Rupee remained stable against the US dollar, closing the week at 278.14. Additionally, remittances for August showed a significant year-over-year increase of 40.5%, totaling US$2.94 billion. Amid these financial movements, concerns have surfaced about a potential mini-budget to raise an additional PkR650 billion in tax collections if the Federal Board of Revenue (FBR) misses its forthcoming targets.