Investor speculation drives PSX past 80,000

KSE-100 index surges 970.20 points, settles at 80,461.34

KARACHI:

Following a one-day break, the Pakistan Stock Exchange (PSX) surged past 80,000 with the addition of nearly 1,000 points, driven by speculation ahead of the International Monetary Fund (IMF) executive board meeting on September 25 for approval of a $7 billion Extended Fund Facility (EFF).

In the morning, the KSE-100 index started trading on a positive note but soon it touched the intra-day low of 79,798.75 points. From there onwards, the index climbed steadily throughout the session.

The market was lifted by several factors, particularly the strong economic indicators such as rising remittances, increased exports and a shrinking trade deficit.

Additionally, the Asian Development Bank's (ADB) confirmation of a $2 billion annual concessionary loan for Pakistan until 2027 and a stable rupee further fueled the bullish momentum.

Consequently, the index was able to cross the 80,000 mark and reached the intra-day high of 80,587.44 towards the close of trading. The bourse ended the day near its peak, posting significant gains of 970 points.

"Stocks closed bullish on speculation ahead of the IMF executive board meeting on September 25 for approval of a $7 billion EFF amid robust economic data showing surging remittances and exports, and a falling trade deficit," said Ahsan Mehanti, MD of Arif Habib Corp.

"The ADB's affirmation of a $2 billion annual concessionary loan till 2027 and a strong rupee also played the role of catalysts in bullish close at the PSX."

At the end of trading, the KSE-100 index recorded a surge of 970.20 points, or 1.22%, and settled at 80,461.34.

Topline Securities, in its report, wrote that the KSE-100 opened on a positive note and hit its intra-day high of 1,096 points. It closed at 80,461, up 1.22%.

"Broad-based buying was observed in blue-chip stocks as heavyweights like Mari Petroleum, Engro Fertilisers, United Bank, Meezan Bank and Fauji Fertiliser posted significant gains, collectively contributing a notable 682 points," it said, adding that in the cement sector Pioneer Cement declared its FY24 results, where the company reported earnings per share of Rs22.79 along with a cash dividend of Rs10 per share.

Arif Habib Limited (AHL) commented that strong gains post-midweek holiday took the KSE-100 through 80,000.

Some 58 shares rose while 37 fell with Mari Petroleum (+10%), Engro Fertilisers (+3.82%) and United Bank (+2.19%) providing the biggest upside contribution to the index.

Bank AL Habib (-1.31%), Thal Limited (-3.86%) and Dawood Hercules Corporation (-0.91%) were the largest index drags, AHL said.

JS Global analyst Mubashir Anis Naviwala, in his review, wrote that the stock market gained over 1,000 points in intra-day trading, driven by clarity about the IMF loan programme.

"Looking ahead, we recommend a buy-on-dips strategy with particular emphasis on cement, exploration and production (E&P) and technology sectors," the analyst added.

Overall trading volumes decreased to 400.2 million shares compared with Monday's tally of 536.2 million. The value of shares traded during the day stood at Rs15.9 billion.

Shares of 439 companies were traded. Of these, 186 closed higher, 199 declined and 54 remained unchanged.

WorldCall Telecom was the volume leader with trading in 32.2 million shares, losing Rs0.03 to close at Rs1.36. It was followed by TRG Pakistan with 22.1 million shares, gaining Rs5.45 to close at Rs59.90 and Pace (Pak) Ltd with 19.6 million shares, losing Rs0.02 to close at Rs6.94.

During the day, foreign investors sold shares worth Rs1.2 billion, according to the NCCPL.