PSX shrugs off political noise, gains 1,435 points

Pakistan Stock Exchange (PSX) concluded the week on a high note, rallying 1.26%, as the conviction of former prime minister Imran Khan in a real estate case did not dampen investor confidence.

The bullish momentum helped the KSE-100 index gain 1.8% week-on-week (WoW), which reflected its recovery from last week's losses. Friday's session saw robust activity, with traded volumes rising 17% day-on-day to 549 million shares and traded value jumping 44% to Rs35.9 billion.

In addition to political developments, improving economic indicators fueled optimism. December's current account surplus, lower cut-off yields in Pakistan Investment Bond's (PIB) auction and a drop in the Sensitive Price Indicator (SPI) strengthened market confidence.

"Stocks closed bullish in an earnings season rally, led by across-the-board interest, as investors viewed patch-up talks between the government and Pakistan Tehreek-e-Insaf (PTI) positively," said Arif Habib Corp MD Ahsan Mehanti.

Falling lending rates, surging forex reserves amid rollover of $2 billion worth of UAE deposits and easing political noise played the role of catalysts in the surge at the PSX, he added.

At the end of trading, the benchmark KSE-100 index posted a gain of 1,435.34 points, or 1.26%, and settled at 115,272.08.

Arif Habib Limited (AHL) wrote in its report that the KSE-100 index saw a strong performance on Friday, closing with a gain of 1.8% week-on-week.

A total of 71 stocks advanced, while 24 declined during the session. Key contributors to the index gains included United Bank Limited (+3.27%), Hub Power (+4.33%) and Lucky Cement (+2.65%). On the other hand, the biggest drags were Mehmood Textile Mills (-3.78%), JDW Sugar Mills (-3.91%) and Faysal Bank (-1.14%), it said.

AHL pointed out that Pakistan recorded its highest-ever monthly IT exports in December 2024, which reached $348 million. This represents a 15% year-on-year increase and 12% month-on-month rise.

For the first half of fiscal year 2024-25, IT exports totaled $1,864 million compared to $1,456 million in the same period of last year, reflecting a growth of 28%.

Looking ahead, the KSE-100 was expected to move towards the upper end of the 112,000-115,500 range in the coming week, with the potential to push towards new highs, AHL added.

Topline Securities, in its market review, said that a bullish session was observed as the KSE-100 index largely traded in the positive zone.

The positivity in the market could be attributed to the conviction handed to ex-PM Imran Khan by an anti-graft court on charges of accepting land illegally from a real estate tycoon. The market took the development positively as it would result in political stability and go in favour of status quo, Topline said.

Muhammad Hasan Ather of JS Global commented that in a bullish trend, the KSE-100 surged 1,435 points. The rally followed the verdict in a graft case involving the former prime minister, which eased political concerns, he said.

Additionally, improving macroeconomic indicators such as a current account surplus and a drop in the SPI further boosted sentiment. "Investors are advised to stay invested in mainboard stocks, which continue to show strong performance and growth potential," the JS analyst said.

Overall trading volumes were recorded at 549.6 million shares, compared with the previous session's tally of 469.4 million. The value of shares traded during the day was Rs35.9 billion. Shares of 461 companies were traded. Of these, 264 stocks closed higher, 128 fell and 69 remained unchanged.

WorldCall Telecom was the volume leader with trading in 101.9 million shares, gaining Rs0.01 to close at Rs1.87. It was followed by Hub Power with 36.9 million shares, gaining Rs5.70 to close at Rs137.40 and Hascol Petroleum with 32.5 million shares, gaining Rs0.80 to close at Rs12.90.