The Pakistan Stock Exchange achieves the distinction of being the “world’s best performing market” for the week

According to a report by Arif Habib Limited, the Pakistan Stock Exchange (PSX) has once again secured the prestigious title of being the “world’s best performing market” for the week. Following the Eid holiday, the stock index demonstrated remarkable growth, surpassing the 44,000-point milestone with a gain of nearly 2,800 points. This upward trajectory can be attributed to investors capitalizing on the recently achieved agreement with the International Monetary Fund (IMF).

The week commenced on a positive note, with a significant daily gain on Monday as investors responded favorably to the long-awaited staff-level agreement with the IMF. However, profit-taking by institutions led to a temporary bearish trend on Tuesday, despite a notable recovery subsequent to the IMF deal.

Wednesday witnessed a relatively flat market closure due to concerns over liquidity risks and the depreciation of the Pakistani rupee. Nonetheless, Thursday marked a return to positive territory as investors anticipated the IMF’s approval of a $3 billion loan in its upcoming executive board meeting, which generated buying interest.

The final trading session remained positive as investors found reassurance in Pakistan’s growing foreign currency reserves, despite the absence of significant positive factors. As a result, the benchmark KSE-100 index surged by 2,755 points, concluding at 44,207 for the week following Eid.

Muhammad Waqas Ghani, an analyst at JS Global, highlighted the investor enthusiasm sparked by the government’s agreement with the IMF, which bolstered market optimism. Significant sector-wise performances were observed in the refinery, technology, and engineering sectors throughout the week.

In terms of trade figures, Pakistan witnessed a substantial reduction in the trade deficit for FY23, which narrowed by 43% year-on-year to $27.5 billion. Additionally, the market responded positively to the government’s disbursement of Rs142 billion to settle dues with Independent Power Producers (IPPs).

Foreign investors displayed heightened buying activity during the week, with a total investment of $4.7 million. However, local banks/DFIs and companies reported selling activities. Average trading volumes and value traded also experienced substantial increases compared to the previous week.

Overall, the Pakistan Stock Exchange exhibited a robust performance, maintaining its position as the world’s best performing market with a noteworthy weekly return.

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