PSX hits fresh high amid banking frenzy

KSE-100 surges around 2,850 points in epic rally, nears 168,500

KARACHI:

The Pakistan Stock Exchange (PSX) closed on a strong note on Thursday as the benchmark KSE-100 index surged around 2,850 points to settle near 168,500, marking another record high.

The rally was powered by aggressive buying in the banking sector, which added over 1,800 points to the index, even as profit-taking in select heavyweight stocks trimmed some gains. Investor participation remained robust, with trading volumes crossing 1.57 billion shares and traded value exceeding Rs70 billion.

"The market rally is being fuelled by improving macroeconomic stability, a strong corporate earnings momentum and renewed investor confidence. Liquidity remains ample, supporting broad-based participation across key sectors," said Waqas Ghani Kukaswadia, Research Head at JS Global.

At the close of trading, the benchmark KSE-100 index posted a robust gain of 2,849.29 points, or 1.72%, and settled at 168,489.63.

The KSE-100 index experienced another strong surge, gaining 1.72% day-on-day to reach a high of 168.6k, reported Arif Habib Limited (AHL). Out of the traded shares, 55 advanced while 45 declined, with Meezan Bank leading the gains at +8.65%, followed by UBL (+3.08%) and Bank AL Habib (+6.27%), which contributed the most to the index's upward movement.

On the downside, Lucky Cement (-1.45%), Hubco (-0.68%), and TPL REIT Fund 1 (-6.02%) were the biggest drags. In economic news, AHL mentioned, Pakistan's trade deficit widened to $3.341 billion in September from a revised $2.872 billion in August, driven by a sharp 11.7% year-on-year (YoY) drop in exports alongside a 14% rise in imports.

Meanwhile, the cement sector showed resilience, with total sales increasing 7% YoY to 4.25 million tons in September. Procter & Gamble announced that it would discontinue its operations in Pakistan, gradually winding down manufacturing and commercial activities for P&G Pakistan and Gillette Pakistan.

Adding to positive notes, Fatima Fertiliser rose 2.74% and surpassed market capitalisation of $1 billion. As the market heads into the final session of the week, the KSE-100 stands at +3.84% week-on-week, with support levels elevated to 166k.

"The KSE-100 index closed the session on a strong upward trajectory, settling at 168,490 after registering a robust gain of 2,849 points," noted Topline Securities in its market review. Bullish momentum prevailed throughout the day, with the index touching the intra-day high of 168,619.

The rally was largely fuelled by continued aggressive buying from mutual funds, which supported investor confidence. The banking sector emerged as the standout performer as Meezan Bank, UBL, Bank AL Habib, HBL, and NBP contributed 1,827 points to the index. However, overall gains were modestly trimmed by profit-taking in Lucky Cement, Hubco, and Systems Ltd, which wiped off 192 points, Topline added.

Overall trading volumes were recorded at 1.57 billion shares compared with the previous session's tally of 1.64 billion. The value of shares traded during the day stood at Rs70.2 billion.

Shares of 489 companies were traded. Of these, 239 stocks closed higher, 227 fell, and 23 remained unchanged.

The Bank of Punjab was the volume leader with trading in 148 million shares, gaining Rs2.98 to close at Rs32.78. It was followed by WorldCall Telecom with 134 million shares, gaining Rs0.12 to close at Rs1.82, and K-Electric with 116 million shares, shedding Rs0.12 to close at Rs7.22. Foreign investors sold shares worth Rs563 million, the National Clearing Company reported.