Pakistan Stock Exchange (PSX) on Tuesday closed on a highly bullish note as increased investor interest in lucrative stocks propelled the benchmark KSE-100 index higher by 1,345 points.
Investor optimism was driven by several factors, including the approval of $40 billion in investment under the country partnership framework by the World Bank, rising global crude oil prices, robust textile exports and solid earnings in fertiliser, cement and banking sectors. Expectations of further policy easing by the State Bank of Pakistan (SBP) and improved market liquidity also contributed to the positive momentum.
The index experienced wide fluctuations, reaching the high of 113,253 points before dipping to the intra-day low of 111,642. It settled at 113,088.
Ahsan Mehanti of Arif Habib Corp commented that stocks closed bullish as investors speculated about the World Bank and International Monetary Fund (IMF), after the World Bank approved $40 billion in investment under the country partnership framework.
He added that surging global crude oil prices, robust textile exports that surged 15.9% year-on-year in January, upbeat earnings in fertiliser, cement and banking sectors, and expectations of further SBP policy easing amid thin inflation played the role of catalysts in bullish close at the PSX. At the end of trading, the benchmark KSE-100 index recorded an increase of 1,344.95 points, or 1.20%, and settled at 113,088.48.
In its review, Topline Securities stated that the KSE-100 index experienced a pullback and ended on a positive note. The index reached a high of 113,253 points, dipped to the intra-day low of 111,642 and closed at 113,088, gaining 1,345 points. The increase was primarily driven by Lucky Cement, Oil and Gas Development Company, Engro Fertilisers and Pakistan Petroleum, which together contributed 608 points, it said.
Arif Habib Limited (AHL) commented that the KSE-100 index witnessed happy days with an aggressive move higher through 113,000 points to set up a move through 113,500 during the current week. Some 77 shares rose, while 20 fell, with Lucky Cement (+3.94%), Oil and Gas Development Company (+3.16%) and Engro Fertilisers (+2.57%) contributing the most to index gains. On the other hand, Mehmood Textile Mills (-9.39%), TRG Pakistan (-3.15%) and Fatima Fertiliser (-1.18%) were the biggest drags, it said.
AHL noted that Pakistan posted a Jul-Jan current account surplus of $682 million compared to a deficit of $1.8 billion last year, as per central bank data. It added that the finance minister said that Pakistan would be able to meet its revenue goals for the current year, without adding further strain on the existing taxpayers.
JS Global analyst Muhammad Hasan Ather said that the KSE-100 index surged 1,345 points, or 1.2%. The robust recovery reflected positive investor sentiment driven by strong earnings reports from major banks and optimism surrounding the ongoing energy sector reforms. Ather noted that anticipation of positive results from the E&P sector and significant gains in the cement sector contributed to the rally.
Overall trading volumes increased to 545 million shares compared with Monday's tally of 511.2 million. Shares of 446 companies were traded. Of these, 255 stocks closed higher, 139 fell and 52 remained unchanged.
The Bank of Punjab was the volume leader with trading in 200.8 million shares, rising Rs1.06 to close at Rs13.23. It was followed by Power Cement with 25.8 million shares, falling Rs0.05 to close at Rs10.71 and WorldCall Telecom with 21.8 million shares, rising Rs0.03 to close at Rs1.50. During the day, foreign investors sold shares worth Rs194.1 million, the NCCPL reported.
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