Positive triggers propel PSX higher
Continuing its upward trajectory, the Pakistan Stock Exchange (PSX) on Wednesday gained 162 points amid a wave of positive indicators like falling inflation, rupee stability, decreasing global commodity prices and growth in the agriculture sector.
In the morning, trading began on a negative note with the KSE-100 index soon touching its intra-day low of 81,529.45 points, influenced by geopolitical tensions in the Middle East. However, as the day progressed, the index began to climb on the back of positive triggers.
These included the S&P's projection of a 200-basis-point cut in policy rate in FY25, a 20% rise in petroleum sales in September and a surge in global crude oil prices.
The bullish sentiment propelled the market above the 82,000 mark and it reached an impressive intra-day high of 82,360.28 points. However, the index failed to stay above the 82,000 level and ended the day with modest gains.
"Stocks closed higher amid falling inflation on rupee stability, decrease in global prices and agricultural growth," said Ahsan Mehanti, Managing Director of Arif Habib Corp.
"S&P's projection of a rate cut of 200 basis points in FY25, a 20% rise in petroleum sales in September and a surge in global crude oil prices played the role of catalysts in bullish close at the PSX."
At the end of trading, the KSE-100 index recorded an increase of 162.41 points, or 0.2%, and settled at 81,967.01.
Topline Securities, in its commentary, said that the session saw significant volatility, peaking at 82,360 and dipping to 81,529, largely due to geopolitical tensions in the Middle East.
The KSE-100 index was primarily driven by United Bank, Fauji Fertiliser, MCB Bank, Engro Corporation and Pakgen Power, which together contributed 270 points, Topline added.
Arif Habib Limited (AHL), in its report, wrote that the intra-day gains extended beyond 82,000 before a flat close on the day.
Some 42 shares rose while 57 fell with United Bank (+2.02%), Fauji Fertiliser (+1.22%) and MCB Bank (+1.25%) being the largest upside contributors.
On the other side, Hub Power (-2.13%), Mari Petroleum (-2.36%) and Engro Fertilisers (-1.57%) were the biggest index drags, it said.
According to latest data, Pakistan's September exports rose 13.5% year-on-year while imports grew 16.1%. As a result, the trade deficit widened to $1.78 billion as compared to $1.75 billion in the previous month.
AHL added that they "continue to look higher against 80,000-81,000 support".
Overall trading volumes increased to 360.99 million shares compared with Tuesday's tally of 359.1 million. The value of shares traded during the day was Rs15.4 billion.
Shares of 448 companies were traded. Of these, 164 stocks closed higher, 221 declined and 63 remained unchanged.
Agha Steel Industries was the volume leader with trading in 30.8 million shares, losing Rs0.07 to close at Rs10.72. It was followed by WorldCall Telecom with 26.5 million shares, losing Rs0.03 to close at Rs1.21 and Fauji Cement with 20.04 million shares, gaining Rs0.79 to close at Rs27.41.
During the day, foreign investors sold shares worth Rs1.49 billion, according to the NCCPL.