Karachi, The KSE-100 index concluded the week with a modest decline, dropping 365 points or 0.46% week-over-week, amid mixed signals from the financial sector and policy adjustments. The trading atmosphere was notably tempered by the fiscal year's end and anticipation of policy impacts from the newly approved budget.
According to AKD Securities Limited, the market was influenced by several key factors including the approval of the FY25 federal budget, which introduced significant fiscal amendments. The budget's passage brought clarity to several tax and policy measures, such as the 15% Federal Excise Duty on sales by builders and developers, continued concessions on Hybrid Electric Vehicles, and an increased Federal Excise Duty on cement.
The market's weekly performance also reflected reactions to external economic indicators and policy announcements, including a decrease in the State Bank of Pakistan’s reserves by US$239 million to US$8.9 billion, and continued strength of the Pakistani Rupee against the dollar. Trading volumes were lower than the previous week, indicating a cautious approach by investors amid the fiscal transitions.
The weekly sector performance showed variability, with Tobacco, Jute, and Vanaspati and allied sectors posting gains, while ETFs, Refinery, and Property sectors experienced declines. The week also witnessed significant foreign investor activity with a record repatriation in May, highlighting the ongoing fiscal dynamics influencing market sentiment.