The Pakistan Stock Exchange staged its strongest weekly rally in nearly six months, with the benchmark KSE-100 index gaining 7,477 points, or 4.5 per cent, to close the week at 173,887.
The rally was driven by easing geopolitical concerns and a sharp fall in international oil prices, alongside positive sentiment after the Democrats’ victory in the US midterm elections, according to brokerage reports.
Trading began quietly on Monday, when the index added 155 points to close at 166,564, before a buying spree on Tuesday lifted it by 1,455 points to 168,018. The bulls took firm control midweek: the index surged 3,995 points on Wednesday and a further 3,366 points on Thursday to close at 175,380, crossing the 175,000 mark.
Profit-taking on Friday trimmed 1,493 points from the index, bringing the week’s close to 173,887. Average daily trading volumes rose 43 per cent on the week to 856 million shares, while traded value increased 24 per cent to $103 million.
Brent crude, the international oil benchmark, fell steeply during the week to close at $98.50 a barrel, compared with an average of $115.50 the previous week. Analysts at Arif Habib Limited said the drop followed the Democrats’ midterm win, while JS Global linked it to Iran’s openness to talks, which eased concerns over inflation and the external account.
Macroeconomic data also supported sentiment. Inflation eased to 9.6 per cent year on year in October, down from 10.3 per cent in September. The government raised Rs385.6 billion in an auction of its papers against a target of Rs350 billion, and the State Bank’s foreign exchange reserves rose by $39 million to $21.56 billion.
Pakistan’s trade deficit stood at $3.9 billion in October, with exports up 2.8 per cent year on year to $2.9 billion and imports up 11.8 per cent to $6.8 billion. Urea sales rose 39 per cent to 487,000 tonnes during the month.
