The KSE-100 index increased by 248.98 points to close at the level of 12,231.60 points on the back of local investors interest in some selective stocks.
Trading activities also improved as the average daily volumes at the ready counter increased by 84.8 percent to 169.60 million shares as compared to previous week's average of 91.76 million shares. Total market capitalisation increased by Rs 69 billion to Rs 3.185 trillion. The foreign investors remained the net buyers of shares worth $5.97 million against previous week's inflows of $2.23 million. The market also outperformed the regional markets by 1.4 percent.
The market opened on a strong positive note on Monday and the index increased by 154.30 points to close at 12,136.92 level with total volume of 196.299 million shares. The trend continued on Tuesday and the index gained another 147.70 points to close at 12,284.62 level with 162.115 million shares.
On Wednesday, the investors opted for profit taking on available margins and the index lost 21.37 points to close at 12,263.25 level with 243.295 million shares. The index declined by 50.01 points to close at 12,213.24 level with 139.144 million shares.
The index on Friday gained 18.36 points and closed the week at the level of 12,231.60 points with 107.140 million shares.
Yawar Uz Zaman, an analyst at InvestCap said that the positivity was felt by local equity market. The euphoria in equities primarily came in on the back of re-affirmation from the SECP chairman with respect to the agreed proposals given by itself to the FBR and Ministry of Finance (with regards to CGT-related issues that were already accepted by the MoF) while expelling any speculations on the implementation of the same within the identified time with sufficient clarifications.
This positive development greatly outstripped Moody's and IMF's concerns that remained with respect to Pakistan's politics and economy (primarily related to the external and domestic challenges including low economic growth, notorious circular debt, double-digit inflation amongst others. IMF pointed out even the need to tighten up the monetary policy in the wake of re-emergence of inflation, while despite concerns Moody's maintained its 'B3' ratings for Pakistan.
Furqan Ayub at JS Global Capital said that the week began on a bullish note for the local bourse with the result season in full swing. However, investors opted for some profit taking after International Monetary Fund's (IMF) report depicted a bleak outlook on Pakistan's economy, some result announcements being below consensus expectations and ambiguity on the upcoming monetary stance.
Further uncertainty came on the back of the standoff between the judiciary and the government on Prime Minister's contempt of court charge.