The stock market closed the outgoing week slightly lower, with the index settling at 78,488.21 points, reflecting a decrease of 313 points or 0.4 percent week-on-week. Despite the overall decline, the market showed signs of resilience with average trading volumes reaching 604 million shares, marking a 4.5 percent increase week-on-week. The average value traded also saw a significant rise, climbing by 20.5 percent to $67 million.
The market is expected to remain positive in the upcoming week, driven by the ongoing corporate results season and key updates on the International Monetary Fund (IMF) programme. According to Brokerage Arif Habib Ltd., “We anticipate the market to remain positive in the coming week, buoyed by the ongoing results season.” Investors are also keenly watching for any updates related to the IMF, as well as the upcoming report from the Pakistan Bureau of Statistics (PBS), which is expected to show single-digit inflation for August 2024. This could re-ignite expectations of a potential rate cut, further boosting market sentiment.
Throughout the week, market activity remained subdued due to concerns over Pakistan’s absence from the IMF’s executive board meeting agenda in August. However, investor sentiment received a boost on Wednesday when Moody’s upgraded Pakistan’s credit rating from Caa3 to Caa2, leading to a positive shift in market dynamics.
