PSX touches 99k amid 7.5-year high activity

Market closes at 97,798 as banking sector dominates trading

KARACHI:

Pakistan Stock Exchange (PSX) on Friday reached a historic milestone as the KSE-100 index touched the 99,000 mark during intra-day trading before retreating amid a seven-and-a-half-year high market activity.

The rally, which broke the previous record, was driven by strong investor sentiment, supported by declining lending rates, speculation about the potential removal of minimum deposit rate (MDR) for savings accounts and stability in macroeconomic indicators.

Market activity surged to Rs45.5 billion ($164 million), the highest since the MSCI reclassification in May 2017. Excluding that, it marked the highest turnover since April 2008.

The banking sector led the charge, contributing 1,139 points to the KSE-100 index. However, profit-taking capped the intra-day rally as rumours about the MDR removal could not be verified.

Global crude oil price stability, a stronger rupee and Pakistan's growing foreign exchange reserves further fueled the optimism.

"Stocks closed at a new all-time high, led by across-the-board activity, as investors weighed falling lending rates and banks' levy on large depositors to avoid tax payment," said Ahsan Mehanti, Managing Director of Arif Habib Corp.

Higher global crude oil prices, rupee stability and surging forex reserves played the role of catalysts in record close at the PSX, he added.

At the end of trading, the benchmark KSE-100 index posted a rise of 469.83 points, or 0.48%, and settled at 97,798.23.

Arif Habib Limited (AHL) said, in its report, that the KSE-100 index surpassed the 99,000 mark during intra-day trading and closed at 97,798, gaining 470 points.

PSX achieved another milestone as market activity surged to a 7.5-year high, with traded value at Rs45.5 billion ($164 million), which marked the highest activity in the regular market since May 31, 2017 (the MSCI reclassification day), it said. Excluding that day, it was the highest traded value since April 11, 2008, nearly 17 years ago, AHL added.

Topline Securities wrote, in its review, that a rally was observed, led by the banking sector, as the KSE-100 rose to the intra-day high of 2,295 points, largely on rumours that the Pakistan Banks Association had tabled a proposal for the removal of MDR on savings deposits for conventional banks.

Some profit-taking was observed later in the day, when investors noted that the rumours had not yet been confirmed by the authorities, it said. In terms of traded value, HBL (Rs2.8 billion), PSO (Rs2.3 billion), Mari Petroleum (Rs2.1 billion), Fauji Fertiliser Company (Rs1.93 billion) and Oil and Gas Development Company (Rs1.74 billion) dominated the activity.

Honda Atlas Cars closed near its lower circuit, with a fall of 9.97%, which could be attributed to its 2QMY25 results, wherein the company posted earnings per share of Rs1.80, down 62% year-on-year and up 27% quarter-on-quarter. The results were lower than industry expectations, Topline added.

JS Global analyst Mubashir Anis Naviwala wrote that after crossing the 99,000 barrier and arriving at an all-time intra-day high, the market witnessed a volatile session and closed at 97,798 (+470 points).

"Going forward, we advise investors to consider a buy-on-dips approach, especially focusing on banking, E&P, pharma and fertiliser sectors," the analyst added.

Overall trading volumes were recorded at 1.25 billion shares compared with Thursday's tally of 969.9 million. The value of shares traded during the day was Rs45.5 billion.

Shares of 449 companies were traded. Of these, 112 stocks closed higher, 296 fell and 41 remained unchanged.

WorldCall Telecom was the volume leader with trading in 177.1 million shares, gaining Rs0.01 to close at Rs1.39. It was followed by K-Electric with 124.1 million shares, losing Rs0.08 to close at Rs5.31 and Hascol Petroleum with 105 million shares, losing Rs1.16 to close at Rs11.23.

During the day, foreign investors sold shares worth Rs4.1 billion, according to the NCCPL.