KSE100 Surpasses 66,000 Mark with Strong Investor Participation and Diverse Economic Developments

Karachi, The KSE100 index achieved a significant milestone this week, crossing the 66,000 mark and closing at 62,224 points, a 7.3% return on a week-on-week basis. This growth was underpinned by robust investor participation, with an average daily turnover of 1,026 million shares, marking a 64% increase from the previous week.

According to JS Global, the Karachi Stock Exchange's performance was bolstered by substantial net foreign buying, totaling US$11 million during the week. In terms of macroeconomic indicators, the Consumer Price Index (CPI) inflation for November 2023 was reported at 29%. Additionally, the State Bank of Pakistan's (SBP) foreign exchange reserves experienced a decline of US$237 million, settling at US$7.02 billion, primarily due to debt repayments.

In a positive development, the Asian Development Bank (ADB) approved a significant funding package of US$659 million for Pakistan. However, the economic scenario was mixed, as cement sales remained subdued in November 2023. In contrast, retail urea prices saw an increase, driven by pre-buying activities for the upcoming Rabi agricultural season.

The stock market also observed fluctuations in specific sectors. Pak Suzuki Motors (PSMC) experienced volatile stock price movements after the company announced a minimum price of Rs406 per share for its voluntary delisting. The initial reaction to the lower-than-expected floor price led to a correction in PSMC's stock price, which later recovered.

On the political front, the Election Commission of Pakistan (ECP) received funding from the Finance Ministry to cover election expenses. The ECP is expected to announce the schedule for the upcoming elections next week, adding another layer of anticipation and speculation to the market dynamics.