Karachi: The stock market showed signs of recovery this week after a period of volatility linked to political uncertainties surrounding the graft case of the former Prime Minister. Upon the announcement of the verdict on Friday, the benchmark KSE100 index rose by 2,025 points, or 1.8% week-on-week, closing at 115,272 points. Key sectors such as Banks, Power, and Pharmaceuticals were instrumental in this rally, contributing 622, 357, and 320 points, respectively.
According to a statement by AKD Securities Limited, Pakistan's current account recorded a surplus of $582 million in December 2024, attributed to a 9% year-on-year increase in remittances. This positive development brought the current account surplus to $1.2 billion for the first half of the fiscal year 2025, a significant turnaround from a $1.4 billion deficit in the same period last year. The power sector also saw a reduction in its circular debt by 11% year-on-year in November 2024, falling to PKR 2.38 trillion, which is expected to enhance cash flow in the energy sector.
Despite these gains, market participation experienced a drop, with the average daily traded volume decreasing by 29% week-on-week to 558 million shares. In foreign exchange developments, the State Bank of Pakistan's reserves rose by $30 million week-on-week, reaching $11.7 billion as of January 10, 2025.
In other significant news, a Saudi firm, Manara, is likely to invest in the Reko Diq mine, and the World Bank has committed to a $40 billion framework for Pakistan over the next decade. Additionally, urea sales surged by 58% year-on-year in December 2024, while petrol and diesel prices saw moderate increases. Car sales also rose sharply by 51% year-on-year in the first half of fiscal year 2025.
Sector performance was mixed, with Refinery, Pharmaceuticals, and Power generation among the top performers, while Jute, Leasing companies, and Sugar sectors faced declines. Foreign investors and mutual funds were net sellers, while individual investors and companies absorbed the excess supply. Top-performing companies included SEARL, GLAXO, and ATRL, whereas ENGROH and PABC were among the laggards.