Bulls maintained their control over Pakistan Stock Exchange (PSX) throughout the outgoing week as the benchmark KSE-100 index surged over 2,000 points in the wake of optimism about progress in talks with the International Monetary Fund (IMF).
The week commenced on a flat note with slight gains as investors remained cautious ahead of the monetary policy announcement on expectations of a hike of 100 basis points (bps) in the key policy rate.
However, investor interest rejuvenated on Tuesday following the monetary policy announcement, which came in line with expectations, and the KSE-100 index rallied with a gain of over 600 points.
Bulls maintained their grip next day as well with hopes of revival of the IMF loan programme as the government was eager to meet the lender’s requirements.
Government’s decision to end control over the rupee-dollar exchange rate boosted investors’ confidence, which tossed the index above the 40,000-point mark on Thursday.
However, investors came under pressure on Friday owing to the rising political temperature coupled with downward trajectory of the rupee, which hit an alltime low of Rs262.60 against the US dollar.
Profit-taking emerged, which pulled the index down by nearly 400 points in the closing session.
The benchmark KSE-100 index closed the week up by 2,043 points, or 5.3%, at 40,450 compared to the previous week.
“KSE-100 continued its upward trajectory throughout the week, rising by 2,438 points (+6.3%) over three consecutive sessions before some profit-taking on the last trading day of the week,” said JS Global analyst Muhammad Waqas Ghani.
The key outperformers were refineries (+8.7% week-on-week), exploration and production (E&P) firms (+7%) and cement companies (+6.7%).
The Monetary Policy Committee on Monday announced a 1% hike in policy rate, taking it to 17%, broadly in line with market estimates. The banking sector closed up 6% week-on-week, he added.
