Markets

Weekly wrap up: Pakistan stock market gains 0.25%

The benchmark KSE-100 index closed at 78,226 points

Weekly wrap up: Pakistan stock market gains 0.25%

A view of the Pakistan Stock Exchange

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The benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) gained 0.25% or 196.5 points to close at 78,226 points during the week ended August 2.

Events that affected the index movement included a 100 basis points cut in Pakistan’s policy rate to 19.5%, Fitch’s upgradation of Pakistan’s Long-Term Foreign-Currency Issuer Default Rating to ‘CCC+’, inflation for July clocking in at 11.1%, and trade deficit for July coming in at $1.94 billion, down 19.7% year-on-year.

Average daily traded volume during the week stood at 310 million shares per day.

Investor sentiment is expected to receive a significant boost this month as the International Monetary Fund’s Executive Board is expected to approve a new $7 billion loan program.

Concurrently, ongoing negotiations with China for debt relief are seen as a crucial step towards successfully implementing the Fund program. These developments, coupled with the upcoming announcement of June-end corporate results, are poised to improve investor confidence and continue unlocking valuations.

However, extended political noise is a key hindrance to the aforementioned positive triggers.

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