During the week, the KSE-100 gained 761 points and closed at 42,858 points. As Pakistan has received a Letter of Intent (LoI) from the IMF and top army officials visit KSA and UAE to ensure financial assistance amid support of dwindling foreign exchange reserves led the positive rally in the market. Resulted, the PKR recovered in the interbank market as it gained PKR 9/USD during the week and clocked in at Rs 215/USD.

The market is also led by other positive developments as the UAE would invest USD 1.0bn in Pakistan stocks on a “buy-back basis and the finance minister actively pursue the state-owned companies to announce healthy dividends, supporting the stock market sentiments similarly also increasing the dividend income of the government and reduce the circular debt.

The cut-off yields of the 3M and 6M T-bill remained unchanged in the last auction further boosting the market sentiments. However, the political concerns still looming in the market as a tussle between provincial and federal governments rising political uncertainty.

Courtesy – ‘Spectrum Research’