Stock Market Recap: Flat Week Despite Midweek Highs
The stock market in Karachi saw a mixed week, with a slight loss despite hitting an all-time high midweek. Political tensions at the start of the week were offset by positive news from the 26th Shanghai Cooperation Organisation summit, boosting investor confidence and pushing the index above 86,000 points on Wednesday.
The rally was further fueled by the government’s announcement regarding outstanding payments to independent power producers and proposed policy options. However, the market struggled to sustain gains above 86,000 due to a dip in the Large-Scale Manufacturing Index output and a widening trade deficit.
Foreign exchange reserves saw a significant increase, crossing the $11 billion mark, but the rupee remained steady. The benchmark KSE 100 index closed at 85,250 points, with notable contributions from various sectors.
Despite continued foreign selling, interest rates decline and positive corporate results are expected to support the market going forward. The market remains attractively valued, trading at a low price-to-earnings ratio and a high dividend yield.
Source: Dawn, October 20th, 2024
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