Led by blue chips, PSX gains 609 points
Pakistan Stock Exchange (PSX) recovered on Friday as it climbed over 600 points in the wake of investor interest in blue-chip oil and cement companies amid surging global crude prices and falling government bond yields.
The inflow of remittances in Pakistan surged 29.3% year-on-year (YoY) to $3.1 billion in December 2024 and projections of policy rate cut by the State Bank later this month played a significant role in bullish close at the PSX.
Traded volumes reached 499.8 million shares with a total value of Rs24.83 billion. Among top contributors to the index were OGDC, Pakistan Petroleum, Bank AL Habib, Habib Metropolitan Bank, DG Khan Cement and Fauji Cement, which collectively contributed 773 points.
Despite a week-on-week decline of 3.69%, analysts remain optimistic, noting that if the market holds above the 112,000 mark, a potential push towards 115,000 is possible in the coming week.
"Stocks showed recovery, led by blue-chip oil and cement shares, amid surging global crude prices and falling government bond yields," said Arif Habib Corp MD Ahsan Mehanti.
Upbeat data showing remittances of $3.1 billion in December 2024, up 29.3% YoY, and projections of policy rate reduction played the role of catalysts in bullish close at the PSX.
At the end of trading, the benchmark KSE-100 index posted a surge of 609.03 points, or 0.54%, and settled at 113,247.29.
According to Arif Habib Limited (AHL), the stock market made a recovery, with the key level to watch being 112,000. The day's low was recorded at 112,013, which helped avert an immediate bearish outlook for the coming week.
A total of 54 shares saw an increase, while 43 shares experienced a decline. Among the top contributors to the index gains were OGDC (+5.6%), Pakistan Petroleum (+5.19%) and Bank Alfalah (+4.1%), it said.
On the downside, the biggest index drags were Engro Holdings (-2.36%), Hubco (-0.97%) and UBL (-0.65%). If the market manages to maintain the 112k level on a weekly basis, it could potentially set the stage for a push towards 115k in the coming week, AHL added.
Topline Securities in its review said that continuing its momentum the market opened on a negative note and traded in the negative zone during the first session, when the index declined to the intra-day low of -625 points (-0.55%).
However, in the second half, buying by institutions was observed as they came in to pick stocks at dips, helping the index to recover and close at 113,247 (up 0.54%), it said.
Traded value-wise, Air Link Communications ($10.54 million), OGDC ($7.63 million), Pakistan Petroleum ($5.86 million), PSO ($4.64 million) and Fauji Fertiliser Company ($3.2 million) dominated the trading activity. Top positive contribution to the index came from OGDC, Pakistan Petroleum, Bank AL Habib, Habib Metropolitan Bank, DG Khan Cement and Fauji Cement, as they cumulatively contributed 773 points, Topline said.
The KSE-100 index declined 3.69% on a week-on-week basis, which could be attributed to profit-taking by investors, it added.
Overall, trading volumes were recorded at 499.8 million shares in the ready market, compared with Thursday's tally of 695.1 million. The value of shares traded during the day was Rs24.8 billion.
Shares of 450 companies were traded. Of these, 177 stocks closed higher, 218 fell and 55 remained unchanged.
WorldCall Telecom was the volume leader with trading in 68.8 million shares, losing Rs0.04 to close at Rs1.75. It was followed by Fauji Foods with 31.8 million shares, gaining Rs0.44 to close at Rs17.09 and Cnergyico PK with 31.6 million shares, losing Rs0.01 to close at Rs6.68.
During the day, foreign investors sold shares worth Rs452 million, according to the NCCPL.