PSX soars to new peak above 60.5k
Segregation of client assets is critical as brokers have been penalised for using client money illegally. PHOTO: AFP
Investors at the Pakistan Stock Exchange (PSX) on Tuesday engaged in extensive buying of attractive stocks and in the process propelled the market to a new record high well above the 60,500-point mark.
The benchmark KSE-100 index shot up over 900 points as market players were enthusiastic following the signing of billions of dollars in agreements between Pakistan and the UAE for boosting economic and strategic cooperation.
There was confidence in Pakistan’s economic performance ahead as well as political stability before and after general elections in February 2024.
The upcoming release of second International Monetary Fund (IMF) loan tranche following its executive board meeting in early December, a sharp fall in Pakistan’s current account deficit and a notable increase in the inflow of remittances further supported the market’s advance.
In the morning, trading commenced at the intra-day low at 60,023.85 points, from where the market spiked. It continued to move north with slight corrections on a few occasions and reached the intra-day high at 60,845.60 towards close.
Some profit-taking in the end slightly pushed the market down, yet it finished trading with robust gains and even crossed the 65,000 barrier. Major contributors to the positive momentum were bank and cement sectors.
“Stocks closed at a new all-time high as investors eyed multibillion-dollar MoUs (memoranda of understanding) signed for projects under SIFC (Special Investment Facilitation Council) initiatives during the premier’s visit to the UAE as well as expected IMF loan release next month,” said Arif Habib Corp MD Ahsan Mehanti.
“Reports of regional exports growing 14.3% year-on-year for July-October 2023 and easing geopolitical uncertainty also played the role of catalysts in the market’s surge.”
At close, the benchmark KSE-100 index recorded a rise of 918.92 points, or 1.54%, and settled at 60,730.26.
Topline Securities, in its report, wrote that a “bullish rampage” continued at Pakistan equities’ market and it seemed like there was no hurdle, psychological or technical resistance, which could take the bulls by the horns.
Key contributors to the positive momentum were banking and cement sectors, with United Bank, MCB Bank, Habib Bank, Hub Power and Lucky Cement contributing 589 points, it said.
Read: PSX crosses 60,000 points milestone
On the flip side, Systems Limited, Mari Petroleum and Ghani Glass witnessed some profit-taking as they cumulatively lost 78 points, Topline added.
Arif Habib Limited (AHL) remarked that it was the best performance in a decade as the market hit 60k following seven consecutive days of gains. It took year-to-date (YTD) gains above 50% in rupee terms.
Advancers-to-decliners ratio stood at 55/42 with banks, refineries and cement companies outperforming the overall market.
Biggest contributors to the market’s surge were United Bank (+7%), MCB Bank (+5.29%) and Habib Bank (+5.25%), it said, adding that Systems Limited (-1.47%) and Mari Petroleum (-2.07%) led the decliners.
JS Global analyst Mohammed Waqar Iqbal said that bullish trend continued at the PSX owing to optimism surrounding positive developments on the macro front.
“Going forward, we recommend investors to adopt a buy-on-dips strategy in the technology, exploration and production, and cement sectors,” the analyst added.
Overall trading volumes increased to 779.7 million shares compared with Monday’s tally of 657.6 million. The value of shares traded during the day was Rs26.1 billion.
Shares of 392 companies were traded. Of these, 177 stocks closed higher, 200 dropped and 15 remained unchanged.
Kohinoor Spinning Mills was the volume leader with trading in 79.2 million shares, gaining Rs0.02 to close at Rs4.02. It was followed by WorldCall Telecom with 57.4 million shares, gaining Rs0.04 to close at Rs1.56 and The Bank of Punjab with 44.3 million shares, gaining Rs0.41 to close at Rs5.45.
Foreign investors were net buyers of shares worth Rs1.45 billion, according to the NCCPL.
Published in The Express Tribune, November 29th, 2023.
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