PSX hits new record high as it crosses 81,800

KARACHI:

Bulls continued to dominate proceedings at the Pakistan Stock Exchange (PSX) on Thursday following a two-day public holiday, propelling the KSE-100 index to a new record high above 81,800 points as investor optimism remained robust.

Earlier, trading kicked off on an optimistic note, when the market extended the previous session’s bullish momentum.

Investors reacted positively to Fitch Ratings’ projections of a reduction in the State Bank of Pakistan (SBP) policy rate to 14% and increase in economic growth to 3.2%.

Furthermore, a $7 billion staff-level agreement between Pakistan and the International Monetary Fund (IMF) at the weekend and the enforcement of fiscal reforms fuelled investor interest at the bourse.

The KSE-100 index reached its intra-day high of 81,909.94 and closed at an all-time high above the 81,800 mark.

“Stocks closed at an all-time high as investors weighed Fitch Ratings’ projections of a cut in the SBP policy rate to 14%, economic growth rising to 3.2%, expansion of the agriculture sector, slowdown in inflation and reduction in fiscal deficit to 6.7%,” said Ahsan Mehanti, MD of Arif Habib Corporation.

“The $7 billion Pakistan-IMF staff-level agreement, which pushed for fiscal reforms, also played the role of catalyst in record close at the PSX.” At the end of trading, the benchmark KSE-100 index recorded a surge of 684.25 points, or 0.84%, and settled at 81,839.86.

Topline Securities, in its report, said that the Pakistan stock market showed a strong momentum as it achieved a new peak for the KSE-100 index.

The positive movement was driven by sectors such as fertiliser, E&P, banking and auto, supported by companies like Engro Corporation, United Bank, Oil and Gas Development Company, Millat Tractors and Meezan Bank. They collectively contributed 423 points to the index, Topline said.

Arif Habib Limited (AHL), in its report, commented that the “upside expansion continued with the KSE-100 moving higher in the uncharted territory”.

It mentioned that Pakistan Petroleum started production from development well Adhi South-8. Additionally, Fatima Fertiliser decided to try buying various instruments of Al-Ghazi Tractors including ordinary shares, convertible preference shares, non-convertible preference shares and zero-coupon bonds/Sukuk.

The pace of gains was accelerating with gap-up openings, which underlined continued demand and supply imbalance in the market, it said. “Heading into the last session of the week, the KSE-100 is currently up 2.26% week-on-week.”

JS Global analyst Mubashir Anis Naviwala noted that bulls continued to dominate the PSX as investors were optimistic about the economic outlook, taking the index to an all-time high. Mostly buying was seen in tech and auto sectors, he said. “Moving forward, investors are advised to book profits at higher levels while dips can be considered as an opportunity to buy,” the analyst added.

Overall trading volumes increased to 470.3 million shares compared with Monday’s tally of 441.3 million. The value of shares traded during the day was Rs25.3 billion.

Shares of 457 companies were traded. Of these, 242 stocks closed higher, 155 fell and 60 remained unchanged.

Pak Elektron was the volume leader with trading in 47.99 million shares, gaining Rs1.47 to close at Rs28.65. It was followed by PIA Holding Company with 25.4 million shares, gaining Rs0.24 to close at Rs19.25 and Pakistan Telecommunication Company with 25.03 million shares, gaining Rs0.69 to close at Rs13.70.

Foreign investors were net buyers of shares worth Rs405.07 million, according to the NCCPL.