PSX stages strong comeback, gains 1,719 points
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 staged a strong recovery, where the KSE-100 index surged over 1,700 points and closed above 113,200.
The rebound followed three consecutive negative sessions as optimism grew over corporate earnings, the International Monetary Fund's (IMF) proposal to reduce gas-sector circular debt and commitments made by a US investor delegation.
Market activity remained robust, with trading in 483 million shares and a total value of Rs26 billion. Key contributors to the rally included Mari Petroleum (+10%), Bank AL Habib (+5.82%) and Lucky Cement (+3.49%).
Analysts anticipate further upward momentum as investors focus on corporate earnings and the IMF review scheduled for late February.
"Stocks turned bullish amid speculation in the earnings season ahead of major announcements this week," said Arif Habib Corp MD Ahsan Mehanti. IMF's proposals to ease the gas circular debt issue, rupee stability and commitments from a US investor delegation played the role of catalysts in the surge at PSX, he added.
At the close of trading, the benchmark KSE-100 index posted a sharp increase of 1,719.04 points, or 1.54%, and settled at 113,206.40.
Arif Habib Limited (AHL) wrote in its report that the KSE-100 index maintained its 112,000115,500 range, confirming a "seek and destroy" market profile.
A total of 76 stocks advanced, while 21 declined, with Mari Petroleum (+10%), Bank AL Habib (+5.82%) and Lucky Cement (+3.49%) contributing the most to index gains. On the other hand, Bank Alfalah (-0.64%), Lucky Core Industries (-1.56%) and Packages Limited (-1.67%) were the biggest drags, it said.
AHL mentioned that Bank Alfalah announced its 4QCY24 earnings per share of Rs2.94, marking a 49% year-on-year decline and a 65% quarter-on-quarter drop. The decline in earnings was primarily driven by subdued net interest income and higher operating expenses.
"With the index recovering within its established range, a move towards the upper end now appears likely," it added. Topline Securities, in its review, reported that the market saw a positive turnaround in Thursday's trading session, with the index dipping to the intra-day low of 111,806 points and climbing to the high of 113,401 points, before closing at 113,206, up 1,719 points.
It marked a recovery following three consecutive negative sessions. The uptick was primarily fuelled by strong performances by Mari Petroleum, Bank AL Habib, Lucky Cement, PSO and Hub Power, which together added 923 points to the index, Topline said.
Muhammad Hasan Ather of JS Global wrote that the KSE-100 saw a significant rebound as the benchmark index rose 1,719 points. The surge was driven by strong buying interest in key sectors such as automobile assemblers, cement, and exploration and production.
Looking ahead, the market outlook remains positive, with upcoming annual results from major banks and the IMF review at the end of February expected to reinforce macroeconomic stability, the JS analyst said.
Overall trading volumes were recorded at 484 million shares compared with the previous session's tally of 449 million. The value of shares traded during the day was Rs26 billion.
Shares of 441 companies were traded. Of these, 272 stocks closed higher, 118 fell and 51 remained unchanged.
Sui Southern Gas Company was the volume leader with trading in 48.4 million shares, gaining Rs2.71 to close at Rs39.11. It was followed by Waves Home Appliances with 33.2 million shares, gaining Rs1.15 to close at Rs12.78 and Bank Makramah with 31.5 million shares, gaining Rs0.22 to close at Rs3.71.
During the day, foreign investors sold shares worth Rs2.2 billion, according to the NCCPL.