Pakistan stocks rally with 0.96% weekly gain amid positive economic indicators

Pakistan stocks gained 0.96% in the week ending November 1, 2024, and are expected to maintain strong momentum due to positive economic indicators.

Investors will watch the SBP’s monetary policy committee decision on November 4, 2024, with a 200bps rate cut expected.

Analysts say the MSCI review in November may increase Pakistan's index weight, and materializing MoUs with Saudi Arabia could boost sentiment.

Disinflation is expected in the coming months due to a high base effect. If global commodity and energy prices stay low and the PKR remains stable, this will support disinflation.

With these positive factors, Pakistan stock exchange is likely to attract investor interest, leading to improved liquidity and increased participation.

The KSE-100 index closed at 90,860 points, a rise of 866 points or 0.96%.

Foreigner buying was witnessed during this week, clocking in at $1.97 million compared to a net sell of $16.36 million last week.

Indian Stocks

The BSE-100 index shed 0.67% during the week ended November 1, 2024.

Indian shares gained in a special one-hour "muhurat" trading session on Friday to celebrate Diwali, led by auto stocks with positive sales data.

Since last Diwali, Indian stocks have risen about 25%, thanks to stable policies, strong economic and corporate growth, and more retail investors.

However, in October, the market ended a four-month winning streak, posting its worst performance since March 2020 due to record foreign outflows and weak corporate earnings.

Currency

Pakistani rupee weakened marginally against the US dollar, depreciating 0.02% in the inter-bank market to PKR 277.70 during the week.

The U.S. dollar strengthened against major currencies due to ongoing economic concerns and signals from central banks.

While stability in equity markets is reducing the appeal of the safe-haven dollar, expectations of smaller rate cuts by the Federal Reserve and concerns over deficit spending after the US presidential election are supporting US bond yields.