Market watch: PSX hits new high, crosses 55k

KSE-100 index surges 1,129.94 points, settles at 55,391.37

KARACHI:

Pakistan Stock Exchange (PSX) on Friday skyrocketed to a new record high as it crossed the 55,000 milestone in the backdrop of technical review talks with the IMF and due to a reduction in bond yields and an increase in remittances.

In the morning, trading began at the intra-day low of 54,371.74 points when the market opened after a day’s break on account of Iqbal Day. However, investors immediately pushed the KSE-100 index upwards and it continuously marched towards north till midday.

The fall in Pakistan Investment Bond (PIB) yields in Wednesday’s auction and the increase of 11.5% month-on-month in workers’ remittances pushed the index to the intra-day high of 55,506.32 towards the close of trading.

Key sectors including power, fertiliser, banking and auto contributed to the robust momentum. The bourse traded in the green throughout the day and eventually closed with attractive gains of over 1,100 points.

“Stocks reached a new all-time high amid higher volumes as investors weighed the fall in PIB yields up to 180 basis points and strong remittances of $2.46 billion, up 10% year-on-year, for October 2023,” said Arif Habib Corp MD Ahsan Mehanti.

“Government’s deliberations for the privatisation of state enterprises and a positive conclusion of IMF’s technical review talks also played the role of catalysts in bullish close of the market.”

At close, the benchmark KSE-100 index recorded an increase of 1,129.94 points, or 2.08%, and settled at 55,391.37 points.

Topline Securities, in its report, said that while continuing its momentum, the KSE-100 index gained 1,130 points and closed at 55,391, the highest-ever index closing level. “This positivity was triggered by the results of PIB auction where yields came down in the range of 15 to 180 basis points, indicating market expectations of a cut in policy rate and the long-awaited notification for increase in gas prices also spurred the market,” it said.

Major positive contribution of 443 points came from Hub Power, Engro Fertilisers, Oil and Gas Development Company, MCB Bank and Meezan Bank, Topline added.

Arif Habib Limited (AHL), in its comments, said that the market closed above 55k as the KSE-100 extended its move into new all-time highs with week-on-week gains of 4.17%.

Key movers were Hub Power (+5.86%), Engro Fertilisers (+4.87%) and MCB Bank (+3.33%) while Unity Foods (-1.93%), Bank Alfalah (-0.36%) and Pakistan Aluminium Beverage Cans (-1.64%) took the index down.

JS Global analyst Muhammad Waqar Iqbal noted that the bullish momentum continued as the KSE-100 index posted gains of 1,130 points to close at 55,391.

Volumes stood at 641 million shares against 483 million in the previous trading session.

“Going forward, we recommend investors to adopt a buy-on-dips strategy in the banking, exploration and production and textile sectors,” the analyst added.

Overall trading volumes increased to 640.8 million shares compared with Wednesday’s tally of 482.7 million. The value of shares traded during the day was Rs21.1 billion.

Shares of 380 companies were traded. Of these, 260 stocks closed higher, 103 dropped and 17 remained unchanged.

Cnergyico PK was the volume leader with trading in 103.5 million shares, gaining Rs0.47 to close at Rs4.78. It was followed by Hum Network with 42.4 million shares, gaining Rs0.51 to close at Rs7.23 and Pakistan Refinery with 31.1 million shares, gaining Rs0.50 to close at Rs23.18.

Foreign investors were net buyers of shares worth Rs1,228 million, according to the NCCPL.

Published in The Express Tribune, November 11^th, 2023.

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