PSX touches new peak after short-lived dip

KARACHI:

Pakistan Stock Exchange (PSX) on Wednesday shot up to a new record high as investors expected a positive outcome of technical review talks with the International Monetary Fund (IMF) and approval of $600 million in loans from China to bridge financing gap.

In the morning, trading commenced at the intra-day low of 53,720.45 points, following a bearish close in the previous session. However, the KSE-100 index immediately gained momentum and rose to the intra-day high of 54,419.65 well before midday, driven by investor interest in a wide range of stocks.

Additionally, optimism about political stability in the wake of general elections scheduled for February 8, 2024 also played a role in lifting the index upwards, as did the government’s efforts to resolve the gas-sector circular debt crisis.

As a result, the bourse swiftly crossed the 54,000 barrier with key sectors including power, fertiliser, banking and auto contributing to the positive momentum.

Since hitting the intra-day high, the KSE-100 fluctuated above the 54,000 mark for the remaining session and eventually closed near that level with handsome gains.

“Stocks reached a new all-time high as investors weighed positive Pak-IMF technical review talks and approval of $600 million in Chinese loans this month,” said Arif Habib Corp MD Ahsan Mehanti.

“Speculation ahead of general elections on February 8 and government’s deliberations to resolve the circular debt crisis also played the role of catalysts in bullish close of the market.”

At close, the benchmark KSE-100 index recorded an increase of 525.70 points, or 0.98%, and settled at 54,261.43 points.

Topline Securities, in its report, said that Pakistan’s stock market regained its upward momentum after a short-lived dip in the previous session.

Read In a remarkable rally, PSX breaks record

“Positive momentum was fuelled by the power, fertiliser, banking and auto sectors with companies like Hub Power, Engro Corporation, Meezan Bank, Habib Bank and Millat Tractors collectively contributing 208 points to the index,” it said.

On the other hand, Indus Motor, TRG Pakistan and Pak Elektron together caused a loss of 54 points, Topline added.

Arif Habib Limited (AHL), in its review, commented that there were more gains for Pakistan’s market that closed above 54,000.

“Hub Power (+1.64%) led the gains while Indus Motor (-5.42%) contributed the most to the decline,” it said, adding that year-to-date gains of 28.3% indicated that the KSE-100 was headed for its best year since 2016.

Among positive news, AHL cited hopes that a deal would be concluded for selling a stake to Saudi Arabia in Reko Diq, one of the world’s biggest gold and copper mining projects, by December.

Overall trading volumes decreased to 482.7 million shares compared with Tuesday’s tally of 506.1 million. The value of shares traded during the day was Rs20.1 billion.

Shares of 374 companies were traded. Of these, 234 stocks closed higher, 118 dropped and 22 remained unchanged.

Pakistan Refinery was the volume leader with trading in 40.3 million shares, gaining Rs1.01 to close at Rs22.68. It was followed by Cnergyico PK with 38.4 million shares, gaining Rs0.16 to close at Rs4.31 and Hum Network with 31.2 million shares, gaining Rs0.42 to close at Rs6.72.

Foreign investors were net sellers of shares worth Rs583.1 million, according to the NCCPL.

Published in The Express Tribune, November 9^th, 2023.

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