PSX maintains record-shattering streak

Index powers past 145,000 on robust banking sector performance

KARACHI:

The Pakistan Stock Exchange (PSX) remained unstoppable on Wednesday as the KSE-100 index surged past 145,000 points, marking a new milestone in its record-shattering drive. The momentum was largely driven by banks and optimism about a positive outcome of the recent Pakistan-US trade agreement.

Additionally, investor expectations about corporate results and the government's measures to consolidate its financial position bolstered market mood. At the close of trading, the benchmark KSE-100 index recorded a surge of 2,051.33 points, or 1.43%, to settle at 145,088.50.

Arif Habib Corp MD Ahsan Mehanti observed that stocks reached a new all-time high amid upbeat economic outlook. "Strong rupee, rising global oil prices and government measures for incentivising remittances and power sector reforms fuelled the bullish close at the PSX, he noted.

KTrade Securities analyst Ahmed Sheraz commented that the stock market continued its bullish streak, with the KSE-100 index gaining 2,051 points day-on-day to close at a new all-time high of 145,088. Banks remained key drivers of the rally.

The surge was also fuelled by the Pakistan-US trade agreement, signalling potential foreign investment. Additionally, the possibility of new US tariffs on India, as announced by President Trump, boosted interest in Pakistan's export-oriented companies, he said.

Top gainers included Habib Bank, National Bank, United Bank, Meezan Bank, Engro Fertilisers and Engro Holdings. He expected the bullish trend to continue due to the strong momentum and investor optimism.

Arif Habib Limited (AHL), in its report, wrote that KSE-100 extended its rally with another highly positive session, gaining 1.4% to hit the weekly target of 145,000. Some 62 stocks advanced while 37 fell with major contribution coming from Habib Bank (+9.71%), National Bank (+9.83%) and United Bank (+1.83%). On the flip side, Fauji Fertiliser (-1.04%), Lucky Core Industries (-2.24%) and Pakgen Power (-1.63%) emerged as the biggest drags, it said.

Among corporate results, MCB Bank posted 2QCY25 earnings per share (EPS) of Rs12.3, reflecting a 13% year-on-year (YoY) decline, bringing 1HCY25 EPS to Rs24.67 (-16% YoY). The bank announced a cash dividend of Rs9 per share, taking the 1HCY25 dividend to Rs18/share.

Fauji Fertiliser, in its analyst briefing, announced that the company was working towards achieving Shariah-compliant status by the end of CY25, with certain requirements still pending and progress would be reflected in Q2 accounts. Meanwhile, Pakistan's textile exports exhibited an impressive growth of 33.7% YoY to $1.69 billion in July.

With the weekly objective now met, market momentum remains strong. However, further upside may come as a surprise, while near-term support is seen in the 142,000-143,000 range, AHL noted.

Topline Securities remarked that the equity market sustained its bullish charge on Wednesday as KSE-100 scaled a fresh intra-day high of 2,150 points, before settling at 145,088, up a solid 2,051 points (+1.43%).

Banking stocks remained the star performers as Habib Bank, National Bank, Meezan Bank and United Bank contributed 1,017 points. HBL and NBP hit their upper circuits during intra-day trade, although mild profit-taking towards the close trimmed some gains, it said.

Investor participation remained robust, with trading volumes climbing to 788 million shares and traded value rising to Rs52.8 billion, both registering a notable increase from previous sessions, added Topline.

JS Global analyst Muhammad Hasan Ather said that investor optimism was fuelled by corporate earnings, improving economic indicators and expectations of supportive government policies. Gains were broad-based, led by banking, energy and fast moving consumer goods' sectors, he said.

Overall, shares of 484 companies were traded. Of these, 264 stocks closed higher, 192 dropped and 28 remained unchanged. The Bank of Punjab was the volume leader with trading in 67.6 million shares, gaining Rs0.41 to close at Rs14.24. It was followed by National Bank with 49.1 million shares, soaring Rs12.46 to close at Rs139.22 and First Dawood Properties with 44.7 million shares, up Rs0.06 at Rs7.04. Foreign investors sold shares worth Rs666.7 million, the National Clearing Company reported.