Buying spree continues as PSX gains 397 points
Pakistan Stock Exchange (PSX) on Thursday continued its buying spree as investor confidence grew on the back of robust corporate earnings, which helped KSE-100 index notch up gains of nearly 400 points.
The bourse remained in the green for most of the day, reaching its intra-day high of 114,202, reflecting strong gains compared to the prior session. Strong performance by key sectors such as cement and banking propelled the index higher.
However, the current account deficit of $420 million for January, coupled with the increase in government bond yields, caused jitters in the market. As a result, selling pressure in the second half wiped off most of the day's gains.
Among major economic news, the finance minister stated, "We need to bring other sectors including agriculture, real estate, retail and wholesale into the tax net."
According to Ahsan Mehanti of Arif Habib Corp, stocks closed higher, driven by strong earnings and upbeat global equities. However, intra-day pressure emerged due to jittery Asian stocks, current account deficit of $420 million for January and surging government bond yields.
"Speculation ahead of IMF review talks next month, the World Bank's $40 billion investment pledge and rising global crude oil prices were the catalysts for the bullish close at the PSX," he added.
At the end of trading, the benchmark KSE-100 index registered an impressive rise of 396.72 points, or 0.35%, and settled at 113,739.16.
Topline Securities wrote in its review that the KSE-100 index showed a positive trend, bolstered by strong results. It reached the peak of 114,202 and ended at 113,739, gaining 397 points, or 0.35%.
The uptick was mainly driven by Cherat Cement, Fauji Cement, Pioneer Cement, DG Khan Cement and MCB Bank, which together accounted for 353 points in the index gains, it said.
Arif Habib Limited (AHL) remarked that another "114k handle" was touched, driven by cement stocks, which pushed KSE-100 up by 1.5% week-on-week while heading into the last session of the week.
A total of 54 shares rose while 42 fell. Cherat Cement (+9.96%), Fauji Cement (+7.05%) and DG Khan Cement (+8.11%) were the biggest contributors to the index gains. On the other side, Abbott Laboratories (-10%), Hub Power (-1.43%) and Bank AL Habib (-1.27%) were the biggest drags, it said.
Faysal Bank (+8.12%) announced CY24 earnings per share of Rs15.7, up 18% year-on-year and dividend per share of Rs7. Earnings were slightly below expectations while the payout exceeded them. The increase in earnings was primarily driven by the growth in total income.
According to AHL, the near-term index support is at last week's high of 113.5k with the target at 116k.
KTrade Securities observed that market momentum shifted gears as the cement sector had its best day of the year, with many stocks posting massive intra-day gains. The advance was primarily led by Cherat Cement, Fauji Cement, Pioneer Cement and DG Khan Cement, which were the top contributors.
It advised investors to keep a close eye on the ongoing result season, which may provide cues for future market direction.
Overall trading volumes increased to 787.4 million shares compared with Wednesday's tally of 667.7 million. The value of shares traded during the day was Rs33.1 billion.
Shares of 453 companies were traded. Of these, 223 stocks closed higher, 176 fell and 54 remained unchanged.
Pakistan International Bulk Terminal led the volumes with trading in 91.5 million shares, rising Rs0.58 to close at Rs8.69. It was followed by Fauji Cement with 73.7 million shares, gaining Rs2.86 to close at Rs43.41 and K-Electric with 58.97 million shares, falling Rs0.17 to close at Rs4.71. During the day, foreign investors sold shares worth Rs517.7 million, the NCCPL reported.