Karachi, The KSE100 index at the Pakistan Stock Exchange (PSX) continued its upward trend this week, closing at an all-time high of 72,742 and posting a week-over-week gain of 3%. Trading activity also saw a significant increase, with average volumes rising 32% in terms of shares and 22% in terms of value compared to the previous week. The Fertilizer sector stocks were the top performers, contributing to the market's strong showing.

According to JS Global, this week's events began with the visit of Iranian President Ebrahim Raisi to Pakistan. During his visit, Pakistan and Iran agreed to increase bilateral trade to US$10 billion over the next five years, facilitated by the signing of multiple agreements and memorandums of understanding (MoUs) covering various areas of cooperation. This diplomatic milestone could lead to increased economic activity between the two countries.

On the economic front, Pakistan's current account balance for March recorded a surplus of US$619 million, marking the highest level in eight years and the third-highest in the last twenty years. This significant improvement was primarily driven by a 31% month-over-month rise in remittances, which is common during Ramadan. The same trend was observed in the previous year. This increase in remittances helped limit the deficit balance for the first nine months of the fiscal year 2024 to US$508 million, representing an 87% year-over-year reduction.

Additionally, the State Bank of Pakistan (SBP) reported that inflows through the Roshan Digital Account (RDA) rose by US$182 million in March, showing a 29% increase month-over-month. The SBP's foreign exchange reserves remained stable at nearly US$8 billion, indicating a level of resilience in the country's monetary stability.

These developments reflect a positive outlook for Pakistan's economy and stock market, with the KSE100 index reaching new heights and key economic indicators showing signs of recovery.