Stocks shine in short week following Eid

In a short week after the Eid holiday, the stock market reached a new peak on optimism that the tax-laden budget 2024-25 has paved the way for securing another bailout package from the International Monetary Fund. Arif Habib Ltd (AHL) said during the two-day trading week, the market sustained its positive momentum, surging from 76,707 points to 78,810 points, closing at an all-time high. Investors remained optimistic amid expectations of the new IMF programme, decelerating inflation, favourable interest rate trajectory, and the shift of funds from fixed income to equities. Moreover, on Friday, the market cap reached a historic level of Rs10.55 trillion, surpassing the previous high of Rs10.45tr set in May 2017. Additionally, the State Bank of Pakistan’s exchange reserves increased by $31m week-on-week to $9.1bn. Furthermore, the rupee remained stable against the dollar at Rs278.5.