In stellar run, PSX climbs to new high
Foreign funds would divert their liquidity into buying Pakistan’s stocks. This would merely increases prices of shares and be profitable for those who already hold stocks. PHOTO: FILE
The Pakistan Stock Exchange (PSX) extended a stellar run on Tuesday, driven by enthusiasm about the ongoing International Monetary Fund (IMF) review and deepening interest in banking shares.
By the close of trading, the benchmark KSE-100 index notched up gains of 1,645.90 points, or 1%, to settle at a record high of 165,493.59. Investors appeared upbeat as Pakistan was expected to successfully pass the IMF review, which would pave the way for the disbursement of next loan tranche.
AKD Securities Director Research Muhammad Awais Ashraf told The Express Tribune that investor sentiment remained positive on expectations of a successful IMF programme review and prospects of foreign direct investment, supported by improving ties with the US and Saudi Arabia.
"Absence of attractive alternative investment options is directing flows towards equities, which remain appealing due to their valuations. Movements in regional and global markets also provided support while the impact of floods in Pakistan turned out to be far less severe than initially anticipated," he said.
KTrade Securities, in its market wrap, wrote that the PSX closed again on a strong note as the KSE-100 gained 1,646 points to touch a new record high of 165,494. The rally was driven primarily by the banking sector, where notable contributions came from UBL, HBL, Meezan Bank and Bank AL Habib. Other top performers were Engro Holdings, Systems Limited, Lucky Cement and Hub Power. Arif Habib Limited (AHL) said that the KSE-100 registered gains that extended up to 166.5k in intra-day trading. Some 49 shares rose while 50 fell with UBL (+2.88%), HBL (+5.06%) and Meezan Bank (+4.08%) contributing the most to index gains.
Nishat Mills (-4.32%) declared FY25 earnings per share (EPS) of Rs17.10, down 6% year-on-year, and dividend per share of Rs2, which was below expectations.
Meanwhile, Air Link Communication (-2.34%) was undertaking expansion of its operations through the establishment of a state-of-the-art production facility at the Sundar Green Special Economic Zone, Lahore. The new facility will support exports of mobile phones, laptops, LED TVs, electronics, home appliances and other hi-tech products by international brands from Pakistan, mentioned AHL.
Overall trading volumes increased to 1.35 billion shares versus Monday's tally of 1.29 billion. Traded value stood at Rs76.8 billion. Overall, shares of 488 companies were traded. Of these, 176 stocks closed higher, 288 dropped and 24 remained unchanged.
WorldCall Telecom was the volume leader with trading in 113.6 million shares, falling Rs0.08 to close at Rs1.74. It was followed by Pak Elektron with 110.4 million shares, rising Rs1.6 to close at Rs56.68 and The Bank of Punjab with 94 million shares, gaining Rs0.53 to close at Rs27.15. Foreign investors sold shares worth Rs193.3 million.