Robust corporate results send PSX to record

KSE-100 index gains 523.56 points, settles at 71,433.46

KARACHI:

Pakistan Stock Exchange (PSX) on Monday rose to a fresh record high during the corporate earnings announcement season, fueled by robust financial results and anticipation ahead of the State Bank of Pakistan’s (SBP) monetary policy announcement on April 29.

In the morning, trading commenced at the intra-day low of 70,882.44 points, but soon the KSE-100 index recovered and moved upwards. The positive momentum was attributed to the government’s discussions about the privatisation of state-owned enterprises (SOEs), rupee stability amid foreign fund inflows and upcoming talks with the International Monetary Fund (IMF) for a new loan package.

Consequently, the market crossed the 71,000-point barrier and reached its intra-day high of 71,861.18. Notably, oil and gas exploration, banking, fertiliser and cement sectors drove the index upwards. It closed the day near its peak with substantial gains. “Stocks closed bullish in an earnings season rally amid strong financial results and speculation ahead of the SBP policy announcement on April 29,” said Ahsan Mehanti, MD of Arif Habib Corp.

“Government’s deliberations on the privatisation of SOEs, rupee stability amid foreign inflows and the IMF loan talks due next month played the role of catalysts in record close at the PSX.”

At close, the benchmark KSE-100 index recorded gains of 523.56 points, or 0.74%, and settled at 71,433.46. Topline Securities, in its report, stated that the trading session at Pakistan’s stock market concluded with a notable milestone as the KSE-100 index surged to a record high of 71,433, marking an increase of 0.74%, or 524 points.

“Driving the upward movement were key sectors such as oil and gas exploration, banking, fertiliser and cement,” it said.

Mari Petroleum, United Bank, Engro Fertilisers, Lucky Cement and Oil and Gas Development Company collectively contributed 351 points to the index. Conversely, Hub Power, Bank AL Habib and Engro Polymer and Chemicals had a negative impact, shedding 57 points, Topline added.

Arif Habib Limited (AHL) wrote that there were “more gains for Pakistan with the KSE-100 crossing 71,000.”

Some 63 shares rose while 33 fell on the KSE-100 index. Mari Petroleum (+5.09%), United Bank (+2.6%) and Engro Fertilisers (+2.52%) were the biggest contributors to the index’s gains while Hub Power (-0.58%), Bank AL Habib (-0.82%) and Engro Polymer and Chemicals (-4.6%) were the major drags.

News flow was dominated by Iranian President Ebrahim Raesi’s visit which, according to Prime Minister Shehbaz Sharif, was “very productive” as the leaders agreed to boost bilateral relations and increase the trade volume to $10 billion, AHL added.

JS Global analyst Muhammad Shuja Qureshi said that positive momentum continued at the PSX where the KSE-100 gained 524 points to close at 71,433.

“The rally was broad-based where only the refinery sector closed in the red. Bulls kept their hold over the auto sector where Dewan Farooque Motors, Honda Atlas Cars and Sazgar Engineering closed at their respective upper locks,” he said, adding that cement, steel and technology sectors saw renewed investor interest. “Investors are advised to book gains on the higher side and wait for dips for any fresh buying,” the analyst added.

Overall trading volumes increased to 655.2 million shares against Friday’s tally of 475.8 million. The value of shares traded during the day was Rs31.2 billion.

Shares of 389 companies were traded. Of these, 217 stocks closed higher, 140 dropped and 32 remained unchanged.

Habib Bank was the volume leader with trading in 48.1 million shares, losing Rs0.55 to close at Rs114.53. It was followed by Pakistan Refinery with 30.5 million shares, losing Rs1.39 to close at Rs28.70 and Pak Elektron with 28.6 million shares, gaining Rs0.99 to close at Rs23.43. Foreign investors were net buyers of shares worth Rs332.6 million, according to the NCCPL.

Published in The Express Tribune, April 23^rd, 2024.

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