Karachi, The Pakistani stock market continued its upward trajectory this week, with the KSE100 index reaching a record high of 57,397 points on Thursday before slightly correcting to close at 57,063 points on Friday, marking a 3.02% week-over-week increase.
According to AKD Research, the market's impressive performance revolved around the conclusion of the International Monetary Fund (IMF) review, which ended in a successful staff-level agreement. This agreement anticipates a US$700 million inflow following the IMF Board's approval. A significant development was the government’s decision to implement a 40% tax on banks' windfall income, aligning with IMF demands and leading to an agreement for further revision in gas prices in January 2024. Additionally, the week witnessed a substantial surge in remittances in October 2023 compared to the previous month. Concurrently, international oil prices eased, attributed to an increase in U.S. strategic reserves and reduced demand from China, with WTI/Brent prices hovering around US$74.1/78.9 per barrel.
Market participation saw a notable improvement, with an average traded volume of 687 million shares, a 26% week-over-week increase. Thursday marked a significant milestone with trading volumes crossing the 1.0 million share mark for the first time in the last 28 months. In currency developments, the Pakistani rupee marginally appreciated by 0.19% week-over-week against the US dollar, closing at PKR 286.5/USD on Friday.
Other key news from the week included the MSCI maintaining Pakistan’s position in the Frontier Market Index, a significant rise in the country's debt and liabilities to Rs 78 trillion, an 18% year-on-year increase in bank deposits, a 24% month-on-month plunge in car sales in October, and an announcement of a $25 billion investment in the real estate industry by UAE firms. Sector-wise, Close-end Mutual Funds, Synthetic & Rayon, and Woollen were top performers, while Vanaspati & Allied Industries, Commercial Banks, and Textile Weaving lagged. Flow-wise, banks recorded major net selling, while foreigners remained bullish with significant net buying.
Company-wise, top performers included HGFA, PAEL, RMPL, IBFL, and PKGP, whereas BIPL, BAFL, CNERGY, PABC, and MEBL were the top laggards for the week.