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Karachi, The KSE-100 index successfully breached the 50,000 threshold this week, marking a significant milestone by closing at 50,732, a 2.5% week-on-week increase, as detailed in the weekly review by JS Securities Limited. The average volume observed an 8% WoW rise, standing at 405 million shares. This week, the spotlight was on the quarterly results, with the better-than-anticipated earnings of PSO, EFERT, MEBL, and EPCL stimulating specific stock activity.
On the broader economic canvas, the State Bank of Pakistan’s reserves expanded by US$67 million, reaching US$7.7 billion. Large-Scale Manufacturing (LSM) YoY growth figures marked a positive 3% YoY in August 2023, a turn for the better after 14 consecutive months of decline. The current account deficit shrank to a mere US$8 million in September 2023, an impressive 98% YoY decrease. This substantial yearly decline can be attributed to a 19% reduction in imports coupled with a 2% uptick in exports. Furthermore, the auction this week witnessed the cut-off yields for 3M, 6M, and 12M Treasury bills decline by 30bp, 45bp, and 44bp respectively.
The banking sector also shared positive trends. September 2023 reflected deposits growth by 1% MoM and 15% YoY. Concurrently, investments increased by 3% MoM and a notable 29% YoY, pushing the Investment to Deposit Ratio (IDR) to record high levels at 86%. In a relief for consumers, the government has reduced domestic petrol prices by Rs40 per liter and High-Speed Diesel (HSD) prices by Rs15 per liter for the coming fortnight.
On the political horizon, PML-N chairman, Nawaz Sharif, is set to return to Pakistan on 21st October. In anticipation of his arrival, the Accountability Court has put a temporary suspension on his warrants, contingent upon his court appearance by 24th October.
The post KSE-100 Index Crosses 50,000 Mark Amid Strong Economic Indicators appeared first on Pakistan Business News.