In stellar run, PSX soars past 114k
Foreign funds would divert their liquidity into buying Pakistan’s stocks. This would merely increases prices of shares and be profitable for those who already hold stocks. PHOTO: FILE
Pakistan Stock Exchange (PSX) on Thursday continued to unfold a remarkable story of triumph as the KSE-100 index scaled a new peak above 114,000 points, a level which would previously have been unimaginable.
The unprecedented feat marked the confluence of investor enthusiasm and economic optimism. Expectations of announcement of a more dovish monetary policy and abundant liquidity in the market gave a boost to investor confidence.
During the day, the index reached the intra-day peak of 114,408.62 and low of 111,308.66 points.
"The KSE-100 index posted its third-highest gain, soaring 3,370 points to close at 114,181. Remarkably, nine of the 10 largest gains have been recorded in 2024," market expert Mohammad Sohail commented.
According to Arif Habib Corp MD Ahsan Mehanti, stocks closed at a new all-time high, following reduction in the short-term government bond yields, which were slashed up to 100 basis points to 11.99% in the State Bank of Pakistan (SBP) auction, which was expected to result in policy easing next week.
Additionally, easing political noise on the back of a potential patch-up between the government and Pakistan Tehreek-e-Insaf (PTI) and reducing geopolitical tensions led to positive sentiment in the market.
Surging global crude oil prices, upbeat data including a 15% year-on-year rise in petroleum sales, 62% increase in car sales and 5% growth in cement dispatches, as well as increase in the Asian Development Bank's growth forecast for Pakistan to 3% acted as catalysts in the surge at the PSX, he added.
At the end of trading, the benchmark KSE-100 index recorded a surge of 3,370.29 points, or 3.04%, to 114,180.51.
Topline Securities wrote in its review that the market extended its historic rally as euphoria gripped investors following a significant decline in T-bill auction yields. This development fuelled aggressive buying across the board, driving the market to new highs.
The KSE-100 index opened on a strong note, marking the intra-day high of 3,598 points before closing at 114,180, up 3,370 points.
"The remarkable performance highlights sustained optimism, with the market now rallying an astounding 185% over the past 18 months," it said.
Thursday's broad-based buying saw blue-chip and growth stocks in key sectors like fertiliser, exploration and production, and technology lead the charge, reflecting robust investor confidence amid a shifting macroeconomic environment, Topline added.
Arif Habib Limited (AHL) analysed in its report that the KSE-100 index saw another surge, gaining 3.04% day-on-day.
A total of 69 shares rose, while 29 declined. Fauji Fertiliser Company (+9.92%), Mari Petroleum (+6.42%) and Pakistan Petroleum (+7.83%) were the biggest contributors to the index gains.
On the other hand, Meezan Bank (-1.48%), Cherat Cement (-3.41%) and Kohat Cement (-4.04%) were the biggest drags, it said.
Going into the last session of the week, the index was up 4.75% week-on-week. The outlook indicates a surge to even higher levels, AHL added.
JS Global analyst Muhammad Hasan Ather stated that stocks surged 3% to 114,181, reflecting robust investor sentiment and a significant turnaround. With trading volumes of 1,470 million shares, the market demonstrated remarkable resilience, he said.
Positive economic indicators, such as expectations of a policy rate cut and recent reduction in the National Savings Schemes' rates, fuelled optimism.
Overall trading volumes increased to 1.47 billion shares against Wednesday's tally of 1.08 billion. The value of shares traded during the day was Rs67.3 billion.
Shares of 464 companies were traded. Of these, 299 stocks closed higher, 132 fell and 33 remained unchanged.
WorldCall Telecom was the volume leader with trading in 232.9 million shares, gaining Rs0.14 to close at Rs1.79. It was followed by Cnergyico PK with trading in 80.2 million shares, gaining Rs0.1 to close at Rs7.21 and Pakistan International Bulk Terminal with 70.7 million shares, gaining Rs1 to close at Rs9.07.
During the day, foreign investors sold shares worth Rs1.18 billion, the NCCPL reported.