PSX reaches new record, crosses 157k barrier

In yet another historic session on Wednesday, the Pakistan Stock Exchange (PSX) rose to a new record high, driven by investor interest in selective stocks of fertiliser, energy and banking sectors. The benchmark KSE-100 index advanced 457.27 points, or 0.29%, and settled at 157,020.80.

During the day, the index oscillated between the high of 157,479.42 and low of 156,079.53. The market saw a couple of dips earlier in the day, but after that the index continued to move north, reaching the intra-day high after midday.

Expectations of economic stability and a favourable policy direction instilled confidence in institutional and retail investors, who contributed significantly to the ongoing rally. Analysts noted that quarterly corporate results across key sectors further supported the bourse, which is not looking back and breaking records.

KTrade Securities, in its market wrap, commented that in a continued upward trajectory, the benchmark KSE-100 index gained 457 points (+0.29%) to close at a new all-time high of 157,021.

Investor sentiment remained broadly positive, fuelled by strong performances from Engro Fertilisers, Pakistan Petroleum, Bank AL Habib, Lucky Core Industries and Mari Energies. However, some pressure was observed in Engro Holdings, United Bank Ltd and Habib Bank Ltd, which trimmed the broader gains, it said. The PSX's resilience highlights investor confidence in Pakistan's long-term economic prospects, supported by improving macro indicators and corporate earnings, KTrade said.

Arif Habib Limited (AHL) remarked that the KSE-100 index maintained its upward momentum, hitting the intra-day high of 157.4k and gaining 0.29% day-on-day to close above the 157k mark.

On the KSE-100, shares of 51 companies rose while 47 stocks fell. Engro Fertilisers (+3.26%), Pakistan Petroleum (+1.81%) and Bank AL Habib (+1.54%) contributed the most to the index gains. On the other side, Engro Holdings (-1.42%), United Bank (-0.81%) and Habib Bank (-0.86%) were the biggest drags, it said.

A big news for the day was Shanghai Electric Power Company's announcement that it has officially withdrawn its interest in buying K-Electric (-2.61%), bringing a nine-year struggle to an end. Had the deal materialised, it would have been the largest private sector acquisition in Pakistan's history, AHL said.

Among corporate earnings, Interloop Limited (+5.12%) declared earnings per share (EPS) of Rs3.84 for FY25, a year-on-year (YoY) drop of 66%, and dividend per share of Rs1, which beat expectations. The earnings contraction was primarily attributed to deteriorating margins, absence of one-off surplus on acquisition of subsidiaries and a significantly higher effective tax rate.

AHL also mentioned that the State Bank of Pakistan (SBP) was expected to maintain policy rate at 11% in its September meeting. While headline inflation and external stability provide room for monetary easing, the impact of recent floods, inflationary pressure, fiscal concerns and the risk of current account slippage warrant caution.

Topline Securities stated that a tussle between bulls and bears was witnessed in the early hours of trading, with the index swinging between the intra-day high of 915 points and low of 484 points. By the close, the bulls managed to dominate, steering the benchmark index to 157,021, up 457 points.

The market remained buoyant, where heavyweights attracted robust flows. Key contributors to the rally included fertiliser, oil, bank and energy stocks. Investor enthusiasm was observed in the book building of Image REIT, which was fully subscribed within a record one and a half hour, Topline added.

Overall trading volumes dropped to 996.3 million shares compared with Tuesday's tally of 1.1 billion. The value of shares traded was Rs52.7 billion.

Shares of 486 companies were traded. Of these, 226 stocks closed higher, 227 fell and 33 remained unchanged.

WorldCall Telecom was the volume leader with trading in 75.5 million shares, rising Rs0.04 to close at Rs1.56. It was followed by The Bank of Punjab with 72.5 million shares, edging up Rs0.02 to close at Rs18.68 and K-Electric with 61.3 million shares, falling Rs0.15 to close at Rs5.60. Foreign investors sold shares worth Rs528.4 million, the National Clearing Company reported.