Karachi: The KSE-100 index concluded the trading week at a historic peak of 82,074, spurred by a robust 3.5% rise. Domestic investors played a pivotal role in propelling the market to these levels, countering the net outflow of US$23 million from foreign investors due to the FTSE rebalancing.

According to JS Global, despite the sell-off by foreign investors, the market’s ascent was supported by positive economic indicators and anticipation of upcoming financial reviews. Notably, the government’s move to reject bids for Market Treasury Bills across all tenors has led to expectations of potential interest rate cuts, contributing to the bullish sentiment. Additionally, the State Bank of Pakistan reported a current account surplus of US$75 million for August 2024, primarily due to remittances exceeding the trade deficit. However, this surplus only slightly mitigated the cumulative current account deficit for the first two months of FY25, which stands at US$171 million. On the manufacturing front, the Pakistan Bureau of Statistics noted a 2.4% year-over-year increase in Large Scale Manufacturing for July 2024, marking a recovery after a decline the previous month. Meanwhile, the State Bank’s reserves increased by US$43 million, totaling US$9.51 billion.