Bulls roared at the Pakistan Stock Exchange (PSX) on Thursday as the benchmark KSE-100 index surged 1,776 points to close near the record high at 157,953.
The rally, fuelled by the landmark Saudi-Pakistan Strategic Mutual Defence Agreement signed in Riyadh, was further supported by strong blue-chip performance and robust trading activity, with volumes soaring to nearly 2 billion shares and value crossing Rs56.9 billion. Arif Habib Limited (AHL) wrote in its report that the stock exchange hit its weekly upside draw of 158,000 points during Thursday's session as the benchmark KSE-100 index continued its upward trajectory.
Market breadth remained positive with 76 shares advancing and 21 declining. The biggest contributors to the index gains were Engro Holdings (+4.1%), NBP (+4.09%) and Mari Petroleum (+2.01%). On the other hand, Pakgen Power fell 1.74%, Sazgar Engineering slipped 0.72% and TRG Pakistan shed 0.95%, it said.
AHL mentioned that sentiment was buoyed by geopolitical developments as Saudi Crown Prince Mohammed bin Salman and Pakistan's Prime Minister Shehbaz Sharif signed a landmark defence agreement in Riyadh, declaring that any aggression against either country would be considered an aggression against both.
Separately, Pakistan received bids from seven groups to advise on the planned sale of PIA's Roosevelt Hotel in New York. Notable bidders included a Citigroup-led consortium featuring Cushman & Wakefield and Proskauer Rose, a CBRE-led consortium with Morgan Stanley, and an Ankura-led group that included The Bank of Punjab and Baker McKenzie.
Heading into the final session of the week, the KSE-100 was up 2.28% on a week-on-week basis, having already achieved its weekly upside target, while support strengthened at the 156,800 level, AHL added.
"Bulls roared following the Saudi-Pak defence pact," noted Topline Securities in its market review. "Bulls stampeded across the trading floor as the bourse surged on the back of a landmark development"; the signing of the Strategic Mutual Defence Agreement between Saudi Arabia and Pakistan, it said.
Riding this wave of optimism, the benchmark index rallied to the intra-day high of 1,904 points before closing at 157,953, marking an impressive gain of 1,776 points (+1.14%). Blue-chip strength further underpinned the rally, with Engro Holdings, NBP, Mari Petroleum, UBL and The Bank of Punjab collectively adding 733 points to the index, Topline added. Mubashir Anis Naviwala of JS Global wrote that the bourse witnessed another record-setting session, with the KSE-100 index touching a new high of 158,083 in intra-day trading.
Tremendous trading volumes highlighted renewed investor confidence across the board. Notable interest was seen in banking, E&P and cement stocks, he said.
Strong participation from both institutional and retail investors fueled the rally further. The outlook remains bullish, with dips offering attractive accumulation opportunities in key sectors, the analyst said. Overall trading volumes were recorded at 1.96 billion shares compared with the previous session's tally of 1.5 billion. The value of shares traded during the day was Rs56.9 billion.
Shares of 485 companies were traded. Of these, 332 stocks closed higher, 124 fell and 29 remained unchanged.
Cnergyico PK was the volume leader with trading in 213.1 million shares, gaining Rs1 to close at Rs8.41. It was followed by WorldCall Telecom with 141.8 million shares, gaining Rs0.06 to close at Rs1.78 and Fauji Foods with 101.8 million shares, gaining Rs1.96 to close at Rs21.51. Foreign investors sold shares worth Rs919.2 million, the National Clearing Company reported.
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