RECORDER REVIEW

KARACHI: The Pakistan Stock Exchange (PSX) remained positive during the last week ending April 18, 2025, on improved macroeconomic indicators and positive sectoral developments.

The benchmark KSE-100 index gained 2,462 points, or 2.1 percent, on a week-on-week basis, closing at 117,316 points compared to 114,853 points in the previous week. Despite the upward momentum, trading activity slowed, with average daily volumes on the ready counter dropping by 18 percent to 456 million shares, down from 557 million shares a week earlier.

The average daily traded value on the ready counter also declined by 5.1 percent, reaching Rs 32.61 billion, as against Rs 34.37 billion in the prior week. However, total market capitalization surged by Rs 231 billion, settling at Rs 14.345 .59 trillion by the end of the week.

BRIndex100 gained 286.50 points during the last week to close at 12,580.53 points compared to 12,294.28 points a week earlier. Average daily turnover at BRIndex100 was 279.55 million shares. BRIndex30 also rose by 543 points on a week-on-week basis to settle at 37,912 points with average daily trading volumes of 251 million shares.

Analysts at AHL Research said the KSE-100 index remained in the green throughout the week, crossing the 117,000 level, driven by improved macroeconomic indicators. A major boost came post announcement of current account for Mar’25, which posted a record surplus of $1.2 billion (highest ever monthly surplus).

Furthermore, progress on resolving the power sector’s circular debt further lifted the market sentiment, given leading banks finalized a PKR 1.275trn rescue package to stabilize the sector and bolster hopes for structural reforms.

On the economic front, LSM declined by 3.5 percent YoY in Feb’25, reflecting ongoing challenges in the industrial sector. Meanwhile, FDI recorded a net inflow of USD 26mn in Mar ‘25. However, SBP reserves declined by $127 million during the week, standing at $10.6 billion. Albeit, the market closed at level of 117,316 points, depicting a surge of 2,462 points or 2.1 percent WoW.

Sector-wise positive contributions came from Banks (1,736pts), Cement (566pts), Automobile (184pts), Power (152pts), and Technology (53pts). Meanwhile, the sectors that contributed negatively were Fertilizer (288pts), E&P’s (172pts), Misc. (13pts), engineering (13pts), and cable & electrical goods (8pts).

Scrip-wise positive contributors were UBL (1,537pts), LUCK (429pts), HUBC (160pts), NBP (149pts), and SAZEW (121pts). Whereas, scrip-wise negative contributions came from FFC (316pts), MARI (231pts), HBL (65pts), FATIMA (22pts) and EPCL (21pts).

Foreigner selling was witnessed during this week clocked in at $4.01 million compared to a net buy of $9.92 million last week. On the local front, buying was reported by Banks (USD 69.0mn) and Individuals (USD 21.9mn). Average volumes arrived at 456mn shares (down 18% WoW), while the average value traded settled at USD 116mn (down 5% WoW).

Other major news includes Rs300bn ‘oil savings’ will be allocated to Balochistan: PM, EPRA to consider Rs0.0309/kWh FCA reduction for March 2025, BYD to launch Shark 6 PHEV in Pakistan in mid-2025, Fast Cables expands production capacity with new copper up casting plant, and auction result: Govt raises Rs965bn through T-bills.

According to JS Global, the KSE-100 Index continued its positive momentum during the week, gaining 2,462 points. The week witnessed many positive developments on the economic front. Most notably, the current account posted a surplus of US$1.2bn in Mar- 2025, supported by record-high remittances of $4.1 billion

In light of the improved external position, the SBP revised its FY25 year-end reserves target to $14 billion from $13 billion as per the SBP Governor. Additionally, Pakistan is expected to receive $4-5 billion by end-Jun 2025, including inflows from international financial institutions.

Fitch has also upgraded Pakistan’s credit rating to B- from CCC+ led by improving external position. Kuwait also extended its oil credit facility to Pakistan for another two years.

On the fiscal front, the government raised the petroleum levy by Rs8.02/litre on petrol and Rs7.01/litre on diesel to support infrastructure spending amid falling oil prices. In the recent T-bill auction, SBP raised Rs965 billion against a target of Rs850 billion, while yields remained largely unchanged. SBP reserves raised $127 million to $10.7 billion.