KARACHI: The benchmark of the national bourse exceeded in the outgoing week its all-time high of 52,876 points that it achieved in May 2017.

Arif Habib Ltd said the outgoing week began with the State Bank of Pakistan (SBP) maintaining its policy rate at 22pc. The decision reflected that inflation had peaked and was expected to ease off in the near future.

Furthermore, the federal cabinet approved a much-awaited increase in gas tariffs, a prerequisite for the successful review by the International Monetary Fund (IMF) of the ongoing Stand-By Arrangement of $3 billion.

Moreover, the International Finance Corporation unveiled a $1.5bn investment strategy for Pakistan. Also, tax revenue collection was recorded at Rs2.8 trillion in the first four months of 2023-24, up 28pc year-on-year.

The trade deficit narrowed by 4.5pc year-on-year to clock in at $2.1bn in October. Additionally, the Election Commission of Pakistan (ECP) announced in the outgoing week that the general election would be held on February 8, 2024.

The foreign exchange reserves of the State Bank of Pakistan also rose by $14 million, reaching $7.5bn as per the latest announcement. Meanwhile, the dollar rate closed at Rs284.31 at the end of the outgoing week after gaining 1.31pc week-on-week.

As a result, the KSE-100 index closed at 53,123 points at the end of the outgoing week after increasing by 2,179 points or 4.3pc on a weekly basis.

Sector-wise, positive contributions came from commercial banking (375 points), power generation and distribution (354 points), fertiliser (265 points), cement (237 points) and exploration and production (202 points).

Meanwhile, sectors that contributed negatively were technology and communication (seven points) and automobile parts and accessories (three points).

Scrip-wise, positive contributors were the Hub Power Company Ltd (343 points), Lucky Cement Ltd (147 points), Meezan Bank Ltd (122 points), United Bank Ltd (103 points) and Interloop Ltd (96 points). Negative contributions came from TRG Pakistan Ltd (58 points), K-Electric Ltd (13 points), the Bank of Punjab Ltd (12 points), Engro Polymer and Chemicals Ltd (six points) and Fatima Fertiliser Ltd (four points).

Foreign buying clocked in at $1.4m in the outgoing week versus a net sale of $3.5m a week ago. Major buying was witnessed in “all other sectors” ($2m) and exploration and production ($0.8m). On the local front, selling was reported by banks ($3.0m) and broker proprietary trading ($0.7m). The average daily volume arrived at 450.5m shares, up 23pc week-on-week. The average daily value traded settled at $52.2m, up 14pc week-on-week.

According to AKD Securities Ltd, the stock market is set to maintain a positive outlook as it is propelled by favorable economic developments like easing inflation and an expected lowering of the interest rate in the current fiscal year. “The ongoing IMF review adds significance, and positive outcomes in this area could further boost the market,” it added.

Published in Dawn, November 5th, 2023