Pakistan Stock Exchange (PSX) remained on its record-breaking spree for the third straight day on Friday as the KSE-100 index added around 180 points and reached a new peak above the 59,000 mark.
An encouraging economic and earnings outlook of Pakistan and the government’s consistent efforts to win the second loan tranche of $700 million from the International Monetary Fund (IMF) boosted investors’ confidence in the market.
A key event for the day was the easing of weekly inflation, measured by the Sensitive Price Indicator (SPI), by 0.06%, which helped the index to stay in the green.
In the morning, the market hit its intra-day high at 59,502.28 points immediately after the first hour of trading. At that point, profit-taking emerged that wiped out almost all the initial gains.
The bourse once again started rising which continued till midday. Later, the index took a dive and reached its intra-day low at 58,990.21 about an hour before the close of trading. The index recovered from that level and closed the day with modest gains.
Major contributors to the market’s advance were bank, fertiliser and cement sectors.
Read PSX crosses new milestone of 59,000 points
“The market closed at a new all-time high on a strong earnings outlook,” said Arif Habib Corp MD Ahsan Mehanti.
“Government’s deliberations to address the power sector circular debt crisis, plans to join BRICS to trigger a surge in exports and imminent release of $700 million in IMF tranche played the role of catalysts in new record close of the market.”
At close, the benchmark KSE-100 index recorded gains of 186.51 points, or 0.32%, and settled at 59,086.35.
Topline Securities, in its commentary, wrote that the KSE-100 index continued its positive momentum and touched the intra-day high at 660 points. However, “fear drove investors to book some gains before weekend as the index finally settled at 59,086, up 0.32%,” it said.
Major contributors to the gains were Habib Bank, Fauji Fertiliser, MCB Bank, Systems Limited and Pakistan Services, which cumulatively added 244 points.
On the flip side, TRG Pakistan, Lucky Cement, Meezan Bank, Unity Foods and Dawood Hercules weighed on the index, pulling it down by 104 points, Topline added.
Arif Habib Limited (AHL) wrote that the KSE-100 index rose another 3.63% week-on-week and closed above 59k.
“In Friday’s session, the index eventually remained balanced with advancers to decliners’ ratio of 45/52, hitting intra-day high at 59,502.”
Key gainers were Habib Bank (+4.65%), Fauji Fertiliser (+2.02%) and MCB Bank (+2.34%) while TRG Pakistan (-3.65%), Lucky Cement (-1.28%) and Meezan Bank (-0.89%) led the losers.
There was “anticipation that the index will focus on 60k next week,” AHL added.
Read more PSX forecast to surge 30% by Dec 2024
JS Global analyst Mohammed Waqar Iqbal stated that the bourse witnessed a volatile session with a high of 59,502 (+602 points) and closed at 59,086, gaining 187 points day-on-day.
“Going forward, we recommend investors to view any downtrend as an opportunity to buy stocks in banking, technology and exploration and production sectors,” the analyst added. Overall trading volumes decreased to 658.4 million shares compared to Thursday’s tally of 669.2 million. The value of shares traded during the day was Rs22 billion.
Shares of 387 companies were traded. Of these, 165 stocks closed higher, 203 dropped and 19 remained unchanged. WorldCall Telecom was the volume leader with trading in 66.8 million shares, losing Rs0.06 to close at Rs1.56. It was followed by Pakistan International Bulk Terminal with 38.9 million shares, gaining Rs0.08 to close at Rs5.65 and TPL Properties with 27.4 million shares, gaining Rs0.31 to close at Rs14.01.
Foreign investors were net buyers of shares worth Rs752.6 million, according to the NCCPL.
Published in The Express Tribune, November 25th, 2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ