Karachi, March 8, 2024 – The Pakistan stock market wrapped up the week on a high note, closing with a remarkable 191-point gain on Friday.
The surge was largely attributed to the optimistic stance of the International Monetary Fund (IMF) regarding Pakistan’s economic outlook.
The benchmark KSE-100 Index at the Pakistan Stock Exchange (PSX) witnessed a notable rise, concluding the trading session at 65,794 points, up from the previous day’s closing of 65,603 points. Analysts from Topline Securities noted that the KSE-100 Index predominantly traded in the positive zone throughout the session, achieving a 0.3 percent increase.
The positive sentiment in the market can be directly linked to the IMF’s announcement that they are prepared to dispatch a mission to Pakistan following the formation of the new cabinet. Key contributors to the Index’s gains were DAWH, EFERT, PSEL, SHEL, and NRL, collectively adding 175 points. Investor participation witnessed a surge on a day-to-day basis, with traded volume and value reaching 481 million shares (a 36% increase) and approximately Rs.17 billion (an 18% YoY increase) respectively. K-Electric (KEL) took the spotlight with a trading volume of 59 million shares, fueled by ongoing news of a mediation process between K-Electric and government entities.
Throughout the outgoing week, the KSE-100 Index registered a 0.7% increase on a week-on-week (WoW) basis. This surge was in response to the directives of Prime Minister Shehbaz Sharif, who instructed the Ministry of Finance to make preparations for crucial talks with the IMF. Investor confidence further escalated with the news that the IMF is ready to send its mission to Pakistan post the formation of the new cabinet.
Several other significant developments marked the outgoing week. Firstly, Moody’s upgraded Pakistan’s banking sector outlook from negative to ‘stable.’ Secondly, the T-Bill auction held during the week proved highly successful, with the government raising Rs527 billion, surpassing the Rs225 billion target. Yields during the auction fell in the range of 3-30 basis points. Lastly, remittances for the month of February reached US$2.25 billion, reflecting a 6% month-on-month decline but an 18% year-on-year increase in Feb-2024.
The average traded volume and value for the week stood at 425 million shares and Rs.16.5 billion, underscoring the robust investor interest and confidence in the market. These developments collectively contributed to a positive atmosphere in the Pakistan stock market, showcasing resilience and strength amid global economic uncertainties. Investors and analysts alike are keenly watching how these factors will shape the market in the weeks to come.
