Continuing its record-eclipsing streak, the Pakistan Stock Exchange (PSX) on Wednesday surged to a new peak as a positive economic outlook and reduction in external debt fuelled investors’ interest in specific sectors.
Although the KSE-100 index had a sluggish start in the morning when it hit the intra-day low at 63,188.71 points, it gradually moved upwards throughout the day. The index eventually climbed to the intra-day high of 64,038.83 points in its final trading hours, crossing the 64,000 mark and touching a new record.
Anticipation of a current account surplus in November 2023, rising dollar inflows and stability of Pakistani rupee helped the market rise to the new peak. Moreover, the uptrend was attributed to strong buying across the board with notable contribution coming from tech, exploration and production (E&P) and banking sectors.
While the market was unable to sustain the 64,000 level, it managed to close the day near that mark.
“Stocks closed at a new all-time high amid high trading on a strong economic outlook and State Bank data showing a 2.3% fall in external debt to Rs22 trillion in October 2023,” said Arif Habib Corp MD Ahsan Mehanti.
“Expectations of a current account surplus in November, improved dollar inflows and rupee stability played the role of catalysts in new record close at the PSX.”
At close, the benchmark KSE-100 index recorded remarkable gains of 961.70 points, or 1.53%, and settled at 63,917.72.
Topline Securities commented that Pakistan equities continued their recent trend of “new day, new all-time high” as the KSE-100 index closed at 63,918.
“Bulls are not leaving any room for bears to walk in as strong buying across the board kept the momentum very high throughout the business hours,” it said.
Meezan Bank, Habib Bank, TRG Pakistan, Pakistan Petroleum and Systems Limited contributed positively by adding 387 points to the index. On the other hand, Pakistan Tobacco, Adamjee Insurance and Millat Tractors witnessed some profit-taking as they cumulatively lost 33 points, Topline added.
Arif Habib Limited (AHL), in its report, wrote that the PSX closed in on “64k for the KSE-100, crossed +40% quarter to date in US dollar terms and was No 2 globally.”
Read: Improved economy propels PSX to new highs
Refineries and tech names were the strongest for the day, it said, adding that the largest contributors to gains were Meezan Bank (+4.06%), Habib Bank (+4.3%) and TRG Pakistan (+7.5%). Negative contribution came from Pakistan Tobacco (-4.86%) and Millat Tractors (-0.36%).
JS Global analyst Mubashir Anis Naviwala said that bullish trend continued as the PSX crossed the 64,000 level in intra-day trading where E&P sector stocks Oil and Gas Development Company (+1.2%) and Pakistan Petroleum (+3.4%) led the market.
“Going forward, we expect the bullish trend to continue and recommend investors to view any downtrend as an opportunity to buy stocks in banking, cement and E&P sectors,” the analyst added.
Overall trading volumes increased to 984.8 million shares compared with Tuesday’s tally of 765.4 million. The value of shares traded during the day was Rs35.1 billion.
Shares of 386 companies were traded. Of these, 259 stocks closed higher, 119 dropped and eight remained unchanged.
K-Electric was the volume leader with trading in 143.7 million shares, gaining Rs0.17 to close at Rs3.52. It was followed by WorldCall Telecom with 56.9 million shares, gaining Rs0.02 to close at Rs1.57 and Hascol Petroleum with 54.5 million shares, gaining Rs1 to close at Rs6.69.
Foreign investors were net buyers of shares worth Rs634.2 million, according to the NCCPL.
Published in The Express Tribune, December 7th, 2023.
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