ISLAMABAD: Pakistan’s benchmark share index posted its strongest weekly gain in months, rising 11% as investor sentiment improved following a temporary ceasefire between the United States and Iran and planned talks in Islamabad, a brokerage report said on Friday.
The rally comes after weeks of volatility triggered by a war that began on Feb. 28, when US-Israeli strikes led to Iranian retaliation, disrupting global energy markets and raising concerns about shipping through the Strait of Hormuz.
A two-week ceasefire and Pakistan’s role in bringing both sides to the negotiating table have since helped calm markets and lifted risk appetite.
“KSE-100 Index gained 11% [on a] WoW [week-on-week] basis,” Topline Securities said in its review. “This gain can be [attributed] to news of a temporary ceasefire between the US and Iran for two weeks and talks between the two parties for resolution that are to take place in Islamabad.”
The KSE-100 index closed at 167,191.37 points on Friday, up 1.01% on the day, after hitting an intraday high of 168,290.28, with traded volumes of 452 million shares, according to market data.
The review said mutual funds were the largest buyers during the week, with net purchases of $51.5 million, while banks, individuals, insurance firms and foreign corporates were net sellers.
Remittances also supported sentiment, with inflows reaching $3.8 billion in March, up 17% from the previous month, taking total inflows for the first nine months of the fiscal year to $30.3 billion, up 8% year-on-year.
Average daily trading volumes stood at 760 million shares, with average daily value at Rs41 billion ($147.3 million), reflecting strong market participation during the week.
