KARACHI: Monetary good faith driven by powerful information and assumptions for a loan cost cut one month from now, the securities exchange expanded its unrivaled binge in the active week, pushing the benchmark record to its most noteworthy at any point level almost 86,000 notwithstanding forceful selling by outsiders.
According to Arif Habib Ltd. (AHL), the market had a remarkable week in which it closed at an all-time high of 85,669 points on Wednesday. The stocks Oil and Gas Development Company (OGDCL) and Pakistan Petroleum Ltd. (PPL) remained the primary focus throughout the week due to the fact that their most recent detailed accounts revealed almost 100% cash sales in the fourth quarter of Fiscal Year 24 and the cessation of circular debt.
On the economic front, the country received $8.8 billion in remittances in the first quarter of FY25, representing a 39 percent increase year-over-year. In addition, the government repurchased T-bills worth Rs475 billion, and the Roshan Digital Account made net investments totaling $1.532 billion.
In addition, auto sales increased by 31 percent year-over-year to 27,600 units in the first quarter of FY25. The State Bank of Pakistan’s foreign exchange reserves increased by $106 million per week to $10.8 billion, the highest level since April 2022. In the meantime, the rupee fell to Rs277.5 against the dollar, or 12 paise, or 0.04 percent.
Subsequently, the benchmark KSE 100 file settled at 85,483.40 in the wake of adding 1,951 focuses or 2.34pc week-on-week.
According to AKD Securities Ltd., the improved liquidity toward equities, as local funds continued to shift flows from fixed-income assets as a result of lower interest rates, was the primary driver of the overall positive sentiment. The visit of a Saudi delegation, which resulted in the signing of 27 memorandums of understanding worth $2.2 billion and discussions regarding the acquisition of Reko-Diq stakes, added to investor optimism.
Furthermore, the public authority at last ended Power Buy Arrangements (PPAs) with five Free Power Makers (IPPs), with conversations in regards to 17 more IPPs arranged for future discussions to move from a take-or-pay model to a take-and-pay.
The current account is expected to remain stable, with a potential surplus for the month, and the trade deficit for September stood at $1.78 billion.
AKD Securities Ltd. says that the market will probably stay up because of falling interest rates, which will keep people moving toward stocks. With a price-to-earnings ratio of 3.7 times and a dividend yield of 12.7 percent, the market continues to be appealing in spite of recent highs.
