In exceptional bull-run, PSX hits new record

Index gains 861 points, driven by economic data, tech and pharma stocks

KARACHI:

Pakistan Stock Exchange (PSX) on Tuesday soared to a new all-time high, reaching 96,036 points in intra-day trading and closing at 95,857, with a gain of over 850 points.

Analysts reported that the PSX's KSE-100 index displayed an exceptional bullish momentum and attributed the surge to falling inflation, surging global crude oil prices and speculation about the government's reconciliation with the opposition.

During the day, the pharmaceutical sector continued to march towards north with AGP Limited, BF Biosciences and Ferozsons Laboratories closing higher than their previous levels.

Ahsan Mehanti of Arif Habib Corp commented that stocks reached a new all-time high as investors weighed a robust economic data including the current account surplus of $349 million for October and a 32% rise in foreign direct investment to $904 million for July-October 2024.

He mentioned that surging global crude oil prices, coupled with speculation about the government's reconciliation with the opposition ahead of protests next week, played the role of catalyst in record close at the PSX.

At the end of trading, the benchmark KSE-100 index recorded an increase of 861 points, or 0.91%, to 95,856.67.

Topline Securities, in its review, reported that the KSE-100 index demonstrated an exceptional bullish momentum, soaring to an all-time high of 96,036 in intra-day trading. The market opened on a positive note, buoyed by expectations that the Consumer Price Index (CPI) would fall within the range of 4.5% to 5%. Notably, "this marks the first time in 78 months that inflation is anticipated to drop below 5%."

The index eventually settled at 95,857, posting an impressive gain of 861 points, Topline noted.

It said that Systems Limited (+8.59%) drew considerable investor interest after announcement that its subsidiary OneZapp had secured approval of the State Bank of Pakistan (SBP) for commencing commercial operations as an electronic money institution (EMI). The pharmaceutical sector continued its upward trajectory, with AGP Limited, BF Biosciences, Ferozsons Laboratories and Abbott all closing higher than their previous levels.

Key contributors to the index's upward movement were Systems Limited, UBL, Abbott, PSO and Engro Fertilisers, which contributed 484 points, Topline added. In its research report, Arif Habib Limited (AHL) commented that the PSX saw "further displacement away from 95k with the KSE-100 gaining 0.9% day-on-day".

Some 63 shares rose while 34 fell with Systems Limited (+8.61%), UBL (+1.83%) and Abbott (+7.02%) being the biggest contributors to the index gains.

The SBP accorded approval to OneZapp, a subsidiary of Systems Limited, for starting commercial operations as an EMI to promote financial inclusion and offer digital payment solutions to Pakistan's underserved communities.

AHL added that Pakistan's Game District agreed to buy a majority stake in Turkish mobile game maker Gleam Games.

JS Global analyst Mubashir Anis Naviwala wrote that significant investor interest was evident in the market, particularly in pharma, E&P and fertiliser sectors.

Moving forward, he advised investors to consider a buy-on-dips approach by focusing on sectors such as cement, fertiliser, automobile, E&P and technology.

Overall trading volumes increased to 830.9 million shares compared with Monday's tally of 765.2 million. The value of shares traded during the day was Rs30 billion.

Shares of 460 companies were traded. Of these, 249 stocks closed higher, 156 fell and 55 remained unchanged.

Hascol Petroleum was the volume leader with trading in 60.1 million shares, gaining Rs1 to close at Rs10.24. It was followed by K-Electric with 44.5 million shares, gaining Rs0.07 to close at Rs5.24 and Cnergyico PK with 42.3 million shares, gaining Rs0.13 to close at Rs4.64.

During the day, foreign investors were net sellers of shares worth Rs2.45 billion, according to the NCCPL.