Could 11, 2025 (MLN): Amidst geopolitical tensions, the native bourse witnessed a bearish week. Heavy sell-offs occurred because of the concern of rising battle between Pakistan and India.

The rising concern of a full-blown army confrontation pushed traders to hurry to dump shares on Thursday, which plummeted the benchmark KSE-100 Index by 6,948.72 factors, or 6.32% at 12:39, inflicting the market to halt.

Nevertheless, the buying and selling ground witnessed a powerful rebound on Friday, which led the benchmark Index to surge by 3,647 factors or 3.52% DoD to shut the week at 107,174.63. 

On a weekly foundation, the Index misplaced 6,939.30 factors or -6.08% in comparison with the earlier week’s shut of 114,113.93.

Market cap

The KSE-100 market capitalization stood at Rs3.20 trillion, down 6.61% from the earlier week’s Rs3.43tr. In USD phrases, the market cap was recorded at $11.38 billion, in comparison with $12.21bn within the prior week.

This week, the index return in USD phrases was -6.29%, in comparison with -1.2% the earlier week.

On the financial entrance,  the Financial Coverage Committee (MPC) of the State Financial institution of Pakistan (SBP) determined to chop the coverage charge by 100 bps to 11%, efficient from Could 6, 2025,  in distinction with market expectations. 

The Worldwide Financial Fund (IMF) Govt Board on Friday accredited a complete of $2.3 billion in funding for Pakistan, comprising the disbursement of a $1 billion tranche underneath its ongoing Prolonged Fund Facility (EFF) and the launch of a brand new $1.3bn Resilience and Sustainability Facility (RSF).

Regardless of escalating geopolitical tensions with neighbouring India, Pakistan’s prime financial management was in London this week to interact with UK officers and international traders in a bid to draw international direct funding.

The international change reserves held by SBP elevated by $118.1 million or 1.16% WoW to $10.33 billion throughout the week ended on Could 02, 2025.

Pakistan’s employees’ remittances reached round $3.2 billion in April 2025. This represents a 30.9% YoY enhance in comparison with April 2024 and a 27.3% fall from the earlier month.

The optimistic financial cues helped stabilize investor sentiment, pushing the KSE-100 index’s fiscal year-to-date returns to 36.62%, whereas CYTD return stood at -6.9%.

Prime Index Movers

Through the week, Industrial Banks, Oil & Fuel Exploration Corporations, Cement and Expertise & Communication dragged the index by -1637.36, -904.67,-738.26, and -529.20 factors, respectively.

Amongst particular person shares UBL, LUCK, HUBC and OGDC misplaced -616.93, -435.09, -339.33 and -337.76, respectively.

FIPI/LIPI

This week, international traders remained internet patrons, buying equities price $1.52m.

Abroad Pakistanis led the shopping for spree with purchases price $2.36m.

However, native traders have been internet sellers this week, offloading equities price $1.52m.

Mutual Funds and People bought securities price $23.6m and $11.24m, respectively, whereas Banks purchased securities price $15.23m.

Outlook

The buying and selling ground will probably see a rally tomorrow amidst strengthening traders’ sentiments on the ceasefire settlement between Pakistan and India and the Worldwide Financial Fund’s (IMF) approval of $2.4 billion in funding.

The truce, easing regional tensions, has coincided with optimistic developments on the financial entrance.

Analysts fraternity is hopeful that the KSE-100 Index to have a rally of three,000 to 4,500 factors, equal to a 3.5% to 4.5% achieve, proper from the opening bell, with a majority of shares anticipated to commerce within the inexperienced.

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Posted on: 2025-05-11T18:34:31+05:00