Stocks end modestly up in volatile trading

KSE-100 index gains 121 points during the day, gives year-to-date return of 83%

KARACHI:

Volatility marked Friday's trading session at the Pakistan Stock Exchange (PSX), where the KSE-100 index traded within a wide range of over 2,500 points before closing modestly up by 0.11% to a new record high.

As the week drew to a close, the PSX achieved a milestone as the average traded value reached an all-time high of Rs60 billion for the week ended December 13, 2024.

Investor interest was driven by expectations of a rate cut in the upcoming monetary policy announcement and speculation of a patch-up between the government and Pakistan Tehreek-e-Insaf (PTI). The index gained 4.8% during the week and settled at a record high of 114,302 points, giving a year-to-date return of 83%.

During Friday's trading, gains in oil stocks like Mari Petroleum (+9.83%) and Oil and Gas Development Company (OGDC, +4.47%) were offset by pressure in the banking sector due to concerns over a revised tax regime.

Analysts called for exercising caution at elevated levels and a careful monitoring of market momentum as the year-end approached.

"Stocks reached a new all-time high as investors eyed a potential patch-up between the government and PTI, monetary policy easing next week amid thin inflation and the finance minister's assurance of achieving stability," said Ahsan Mehanti, MD of Arif Habib Corp.

Surging global crude oil prices and higher foreign currency reserves also played the role of catalysts in record close at the PSX, he said.

At the end of trading, the benchmark KSE-100 index posted an increase of 121.29 points, or 0.11%, and settled at 114,301.80.

"PSX reached a new milestone as the weekly average traded value hit an all-time high of Rs60 billion for the week ended December 13, 2024," wrote AHL in its report.

The KSE-100 index surged 4.8% during the week, closing at a record high of 114,302 points. So far in the current calendar year, the benchmark index has delivered an impressive return of 83%, it said.

A reshuffle in market capitalisation was witnessed on Friday, with Mari Petroleum surpassing OGDC, boasting a capitalisation of Rs983 billion ($3.53 billion). In KSE-100, Mari Petroleum now holds the second-largest weight of 5.60%.

During the day, 41 shares advanced while 58 declined. Mari Petroleum (+9.83%), Fauji Fertiliser Company (+3.69%) and OGDC (+4.47%) were the biggest contributors to the index gains.

On the other hand, banks such as UBL (-4.32%), Meezan Bank (-5.57%) and Bank Alfalah (-4.95%) were the largest drags, AHL added.

Topline Securities, in its market review, said a range-bound session was observed as the KSE-100 index traded between the intra-day high of 992 points and intra-day low of -1,571 points. It closed at 114,302, up 0.11%.

Pressure was observed in the banking sector, where UBL, Meezan Bank, Bank AL Habib, HBL and Bank Alfalah cumulatively lost 860 points. It could be attributed to the talk that a committee formed earlier in the week to discuss alternative options to the advances-to-deposit ratio (ADR)-based tax regime had finalised its recommendations, Topline said.

To recall, the government through the Finance Act had introduced higher tax rates on the investment income of banks with the ADR ratio of less than 50%, in a bid to encourage higher commercial lending.

Investor interest was observed in the oil sector where Mari Petroleum (Rs5.29 billion), PSO (Rs3.89 billion), OGDC (Rs3.73 billion) and Pakistan Petroleum (Rs2.71 billion) were the top companies in terms of traded value, Topline added.

Overall trading volumes fell to 1.1 billion shares compared with Thursday's tally of 1.5 billion. The value of shares traded during the day was Rs59.5 billion.

Shares of 461 companies were traded. Of these, 178 stocks closed higher, 251 fell and 32 remained unchanged.

WorldCall Telecom was the volume leader with trading in 129.9 million shares, staying stable at Rs1.79. It was followed by Pakistan International Bulk Terminal with 75.5 million shares, gaining Rs0.6 to close at Rs9.67 and Treet Corp with 47.8 million shares, gaining Rs2.2 to close at Rs24.49.

During the day, foreign investors sold shares worth Rs473.3 million, according to the NCCPL.