The Pakistan Stock Exchange (PSX) closed on a high note on Monday as the benchmark KSE-100 index gained 1,018 points to hit a record high of 142,053. The rally was driven by strong investor sentiment surrounding Rs7.7 billion worth of term finance certificate (TFC) payment to Oil and Gas Development Company (OGDC) and optimism about the upcoming cement sector results.
A favourable US tariff deal and the government's resolve to end the circular debt crisis in the power sector aided the momentum.
Ahsan Mehanti of Arif Habib Corp stated that stocks reached a new all-time high amid speculation ahead of major earnings' announcements. The cement sector outperformed over reports of record dispatches in July, which surged 30% year-on-year, he said.
Additionally, a favourable US tariff deal, rupee stability, the government's resolve to end the circular debt crisis and thin inflation for July drove the bullish close at the PSX, noted Mehanti.
At the end of trading, the benchmark KSE-100 index recorded an increase of 1,017.66 points, or 0.72%, and settled at 142,052.65.
In its review, Topline Securities remarked that the KSE-100 index touched its highest closing level to date, fuelled by positive sentiment surrounding OGDC, which received its first TFC payment of Rs7.7 billion, and optimism about cement sector results, backed by improved monthly sales performance.
Major positive contributors included Lucky Cement, Bank AL Habib, HBL, Hub Power and Systems Limited, which collectively added 716 points to the index. On the downside, Pakgen Power, Engro Holdings and Pakistan Petroleum shaved off 134 points, added Topline.
According to Arif Habib Limited (AHL), the week started with gains as KSE-100 rose above 142,000 points. Some 54 shares rose while 46 fell with Lucky Cement (+3.39%), Bank AL Habib (+3.39%) and HBL (+2.88%) contributing the most to index gains. On the flip side, Pakgen Power (-6.97%), Engro Holdings (-0.62%) and Pakistan Petroleum (-1%) were the biggest drags, it said.
The brokerage house noted that OGDC received a Rs7.7 billion installment from its Rs92 billion settlement, as part of energy sector's circular debt settlement plan. Additionally, local cement sales in July increased 18% to 3 million tonnes while exports doubled to almost 1 million tonnes, according to industry data.
AHL concluded its review by stating that support for the index rose to 140,100-140,400, with upside draw for the week at 145,000.
JS Global analyst Muhammad Hasan Ather commented that KSE-100 kicked off the trading day on a strong note, with the benchmark index hitting a new all-time high, up 1,288 points to cross 142,200 in intra-day trading. The surge was attributed to positive economic indicators, political stability and favourable government policies, alongside strong corporate earnings, he stated.
PSX has also seen significant foreign investment growth, marking an 80% increase last year. Looking ahead, the market's bullish trend is expected to continue, supported by macroeconomic stability and investor confidence, positioning it as the regional leader, Ather added.
Overall trading volumes increased to 666.4 million shares compared with Friday's tally of 609.7 million. Traded value decreased to Rs42.9 billion as compared to Rs50.6 billion in the previous session.
Shares of 482 companies were traded. Of these, 247 stocks closed higher, 206 dropped and 29 remained unchanged.
Cnergyico PK was the volume leader with trading in 53.7 million shares, gaining Rs0.28 to close at Rs7.39. It was followed by Pakistan International Bulk Terminal with 50.6 million shares, gaining Rs0.39 to close at Rs10.44 and The Bank of Punjab with 30.6 million shares, falling Rs0.03 to close at Rs13.90. Foreign investors bought shares worth Rs201.5 million, the National Clearing Company reported.
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