Karachi, The Karachi Stock Exchange (KSE) 100 Index witnessed a week of mixed trading outcomes, closing with a 0.5% increase week-over-week at 65,152 points. The trading week began on a positive note, with gains in the first three sessions, but the mood shifted towards profit-taking in the latter half. Significant events influencing the market included the International Monetary Fund's (IMF) completion of its assessment under the US$3 billion Stand-By Arrangement (SBA) and the State Bank of Pakistan's (SBP) decision to maintain its policy rate.

According to JS Global, the market's volatility was punctuated by key developments, notably the IMF's Staff Level Agreement signing and the newly elected government's commitment to adhering to IMF's structural benchmarks and indicative targets. The SBP's Monetary Policy Statement (MPS) was another focal point, with the decision to keep the policy rate unchanged at 22% for the fifth consecutive period since July 2023, justified by the persistently high inflation and an unfavorable inflation outlook, despite a recent trend towards disinflation.

The report also highlighted the performance of the Large Scale Manufacturing (LSM) sector, which recorded a 1.8% year-over-year increase in January 2024, marking positive growth for the second consecutive month. In the financial markets, the recent auction saw a rise in cut-off yields for Treasury Bills (T-Bills), with rates for 3-month, 6-month, and 12-month maturities reaching 21.7%, 20.4%, and 20.9%, respectively. Additionally, SBP's foreign exchange reserves saw an increment of US$105 million, reaching a total of US$8.0 billion over the week.