Bulls snatch control as stocks rally

KSE-100 index climbs 679.83 points, settles at 66,130.02

KARACHI:

Pakistan Stock Exchange (PSX) on Friday enjoyed a handsome rally amid heavy trading as it crossed 66,000 points on the back of investor hopes ahead of International Monetary Fund’s (IMF) board meeting for loan approval and an increase in the State Bank’s foreign currency reserves.

In the morning, when trading commenced, the market lost some ground and reached its intra-day low at 65,559.48 in the very first hour owing to profit-taking. However, immediately after that, bulls took over, taking the KSE-100 index gradually to higher levels.

Extensive support came from exploration and production (E&P), power, refinery and banking sectors with the market hitting its intra-day high at 66,346.76 later in the day.

About an hour before close, the index dived again, but recouped losses soon. It closed the day with an increase of over 650 points.

“Stocks closed bullish amid record high trading ahead of the IMF’s board meeting scheduled for January 11, a strong earnings outlook and surging foreign exchange reserves,” said Arif Habib Corp MD Ahsan Mehanti.

“PTCL’s Rs108 billion Telenor acquisition deal, Saudi Aramco’s $100 million agreement to buy equity in Gas and Oil Pakistan and improving external account indicators played the role of catalysts in bullish close at the PSX.”

At close, the benchmark KSE-100 index recorded a rise of 679.83 points, or 1.04%, and settled at 66,130.02.

Topline Securities, in its report, wrote that the bourse extended its previous day’s gains and closed at 66,130, up 1.04%. “This rise can be attributed partly to the Election Commission of Pakistan’s clarification that polls will take place on time on February 8, 2024,” it said.

Pakistan Petroleum, K-Electric, Millat Tractors, Cnergyico PK and Bank Alfalah added 301 points to the index. On the flip side, Meezan Bank, Bank AL Habib, Services Industries, United Bank and Hub Power pulled the index down by 78 points, Topline added.

Arif Habib Limited (AHL) commented that stocks witnessed their first weekly decline since the end of September as the KSE-100 lost 0.15% week-on-week (WoW).

“Yet, a strong recovery in primary trading on market-on-close (MOC) orders for FTSE rebalancing allowed a close above 66k with advancers-to-decliners ratio of 65:28,” it said.

Read PSX breaks more records as bulls charge

Positive contribution came from Pakistan Petroleum (+4.55%), K-Electric (+16.44%) and Millat Tractors (+2.82%) while the index drags were Meezan Bank (-1.16%), Bank Alfalah (-1.29%) and Service Industries (-3.77%).

Besides, the index took some strength from the appointment of a financial adviser for the sale of Pakistan International Airlines. “The market remained below resistance at 66.6k with the possibility of declines into 64k next week,” AHL added.

JS Global analyst Mubashir Anis Naviwala said that bullish trend continued as the KSE-100 went up to intra-day high of 66,347 points. The index closed at 66,130.

“We recommend investors to view any downside as an opportunity to buy stocks in banking, cement and E&P sectors,” the analyst said.

Overall trading volumes increased to 1.7 billion shares against Thursday’s tally of 981.2 million. The value of shares traded during the day was Rs29.98 billion.

Shares of 392 companies were traded. Of these, 261 stocks closed higher, 115 dropped and 16 remained unchanged.

K-Electric was the volume leader with trading in 385.4 million shares, gaining Rs0.74 to close at Rs5.24. It was followed by WorldCall Telecom with 195.5 million shares, gaining Rs0.14 to close at Rs1.82 and Cnergyico PK with 185.8 million shares, gaining Rs0.91 to close at Rs5.75.

Foreign investors were net buyers of shares worth Rs1.9 billion, according to the NCCPL.

Published in The Express Tribune, December 16^th, 2023.

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