Karachi: The benchmark KSE-100 index closed the week at 81,292 points, reflecting a loss of 782 points or 0.95%, amid persistent market volatility. The week was marked by brief positive sentiment due to the anticipation of the IMF board's meeting scheduled for September 25, but this was quickly overshadowed by continued foreign selling, political disturbances, and concerns over potential terminations of contracts with Independent Power Producers (IPPs).
According to AKD Securities Limited, the power generation and distribution sector was significantly impacted, contributing an 800-point drop to the index. This was compounded by news of an expected shortfall of PKR 275 billion in the first quarter of fiscal year 2025 by the Federal Board of Revenue (FBR). The government's response involves plans to abolish the non-filer status and implement stringent measures against tax fraud to bolster tax revenues.
Trading volumes also declined by 17.1% week-over-week, with an average daily trade of 389.35 million shares, compared to 469.45 million in the previous week. Additionally, the State Bank of Pakistan reported a modest increase in foreign exchange reserves, up by $24 million, totaling $9.53 billion as of September 20, 2024.
The Pakistani Rupee remained largely stable against the US dollar, closing the week at 277.64. Other significant developments included the IMF's distancing from Pakistan's decision to secure a $600 million commercial loan at an 11% interest rate, and praise from US Assistant Secretary of State Donald Lu regarding deeper ties with the Shehbaz government. Furthermore, the government's borrowing surged to a record high of 100.8%.
In sector performance, transport, fertilizers, investment banks, leather, and pharmaceuticals sectors were the top performers, while the power generation, leasing companies, textile spinning, engineering, and jute sectors saw significant declines. Foreign investors were net sellers with $12.44 million, whereas mutual funds were net buyers, absorbing $16.21 million of shares.
Top performing companies included FFC, GLAXO, AKBL, FFBL, and THALL, with notable gains for the week. In contrast, HUBC, PGLC, SML, MARI, and KEL were among the week's top laggards, each recording significant losses.