PSX nears 172k on funds buying

The Pakistan Stock Exchange (PSX) extended its record-breaking rally on Thursday as the KSE-100 index closed at a fresh all-time high and approached the 172,000 mark.

Buying momentum was driven by improved investor confidence following better-than-expected November current account data and reduction in Pakistan Investment Bond (PIB) yields. Key stocks including Engro Holdings, Fauji Fertiliser Company and UBL led gains, while declines in Pioneer Cement, DH Partners and Maple Leaf Cement partially offset the advance.

"Buying momentum remained firm throughout the day, driven by a better-than-expected current account for November, which improved investor confidence and encouraged fresh positioning across key sectors," said Ali Najib, Deputy Head of Trading at Arif Habib Ltd (AHL).

At the close of trading, the benchmark KSE-100 index posted an increase of 1,646.79 points, or 0.97%, and settled at 171,960.65.

Topline Securities, in its market review, wrote that the local bourse saw strong buying interest from local funds after a drop in PIB yields boosted investor confidence. The momentum pushed the index to the intra-day high of 1,935 points, before it closed at 171,961, up 1,647 points, marking a firm and broad-based session.

Strength in Engro Holdings, Fauji Fertiliser, UBL, Lucky Cement and Bank AL Habib underpinned the positive momentum, which contributed 1,504 points to the index. The upside was partly offset by declines in Pioneer Cement, DH Partners and Maple Leaf Cement, which together erased 176 points. Market engagement remained healthy, with total traded volumes reaching 950 million shares, Topline added.

AHL noted that the KSE-100 index marched away from the 170,000 mark and was moving towards new all-time highs. On the index, 53 shares advanced while 47 declined.

Leading the gains were Engro Holdings (+8.37%), Fauji Fertiliser (+2.39%) and UBL (+2.3%), which contributed the most to the index's upward momentum. On the downside, Pioneer Cement (-4.69%), DH Partners (-10%) and Maple Leaf Cement (-2.52%) were the biggest drags on the market, it said.

In corporate developments, Maple Leaf announced that it would acquire 26.6 million shares, representing 11.72% of the issued and paid-up ordinary share capital, of Pioneer Cement at Rs478.43 per share, effectively gaining control of the company.

Additionally, TPL Corp gave approval for entering into a share purchase agreement with Jazz International Holding for its subsidiary TPLI, which saw a 3.31% decline. Meanwhile, Islamabad sent a letter to New Delhi, expressing concern over abrupt variations in the flow of Chenab River.

On the global front, the Bank of Japan is scheduled to meet on Friday morning, where a rate hike from 0.5% to 0.75% is widely expected. This move is likely to strengthen the Japanese yen and could impact global markets. "Heading into the final session of the week, the KSE-100 is up 1.23% on a weekly basis, with market attention focused on the critical 170,000 level," AHL said.

Ismail Iqbal Securities commented that the benchmark index closed on a positive note, registering a new all-time high both intra-day and at market's close. The rally was backed by improved liquidity as investor activity largely centred around acquisition-related moves.

Overall trading volumes were recorded at 950 million shares compared with the previous session's tally of 1,069 million. The value of shares traded during the day was Rs54.1 billion.

Shares of 482 companies were traded. Of these, 217 stocks closed higher, 228 fell and 37 remained unchanged.

TPL REIT Fund I was the volume leader with trading in 75.8 million shares, losing Rs0.21 to close at Rs10.85. It was followed by Hascol Petroleum with 37.1 million shares, losing Rs0.41 to close at Rs15.22 and Siddiqsons Tin Plate with 36.7 million shares, losing Rs0.46 to close at Rs8.70.

Foreign investors sold shares worth Rs1.6 billion, the National Clearing Company reported.