*Stock Smart – Feb 21, 2025* *Weekly Market Review* Market witnessed a modestly positive week, with the benchmark KSE-100 index gaining 716pts or 0.64%WoW, closing at 112,801pts on Friday. Market activity was largely driven by ongoing corporate results, where better-than-anticipated earnings from cement companies and a stock split announced by LUCK led the cement sector to contribute 549pts to the index. Additionally, the authorities' stance against imposing new taxes ahead of the upcoming IMF review boosted investor confidence, with expectations of smooth review process, expected next month. On the macro front, foreign direct investment (FDI) surged by 56%YoY to US$1.5bn in 7MFY25, primarily due to higher inflows from China into the power sector, particularly Hydel projects. Meanwhile, current account posted a deficit of US$420mn in Jan’25 after three months of surplus, driven by 17%YoY increase in imports; however, the 7MFY25 balance remained in surplus at US$682mn. Moreover, T-bill yields in the latest auction rose by 3-17bps across 3-12-month tenors, with 3-month yield climbing to 11.82%. Additionally, Large-Scale Manufacturing (LSM) index declined by 1.87%YoY in 1HFY25, primarily due to a slowdown in construction-related sectors, including cement and steel *Outlook* Market outlook remains positive, with the KSE-100 expected to be influenced by corporate earnings announcements, which could set the tone for sector-specific movements. Additionally, any developments regarding the upcoming IMF review or the US$1.0bn climate financing by IMF could further trigger positive momentum. Over the medium term, the KSE-100 is anticipated to sustain its upward trajectory, with a target of 165,215 points by Dec’25, primarily driven by strong earnings in fertilizers, sustained ROEs in banks, and improving cash flows of E&Ps and OMCs, benefiting from falling interest rates and economic stability. Read more https://research.akdsl.com/Stock_Smart_Weekly_Feb_21_2025.pdf *Regards* *AKD Research*