Karachi, The Karachi Stock Exchange's KSE100 index achieved a record high closing of 70,910 this week, driven by strong performance in the refinery and automotive sectors, and buoyed by significant economic and diplomatic activities. The market saw a week-over-week gain of 0.8%, with trading volumes increasing notably from the previous week.

According to JS Global, the surge in the KSE100 index was supported by several positive developments this week, including the federal government's adjustments to fuel prices and high-level diplomatic engagements with Saudi Arabia that focused on investment in key sectors like mining, energy, and oil and gas. These factors contributed to a 2.2% week-over-week return in the Exploration and Production (E and P) sector.

The week also highlighted economic data from the Pakistan Bureau of Statistics, which indicated that February 2024 marked the third consecutive month of year-over-year growth in the Large-Scale Manufacturing (LSM) sector, the longest growth streak since 2022. However, the cumulative growth for the first eight months of fiscal year 2024 slightly contracted by 0.5%.

The financial markets experienced mixed results in government securities; the Pakistan Investment Bonds (PIB) auction only managed to raise PKR 6.8 billion against a target of PKR 190 billion. Conversely, the Treasury bills auction saw cut-off yields remain stable. Additionally, the State Bank of Pakistan’s reserves held steady at US$8 billion, providing some stability to the economic outlook.

This week’s achievements in the stock market and the broader economic indicators suggest a cautiously optimistic outlook for Pakistan's economy, with specific sectors showing robust growth potential.