Stocks maintain positive momentum

KSE-100 index gains 1,392 points on Saudi inflows, peace moves

KARACHI:

The rally continued at the Pakistan Stock Exchange (PSX) on Thursday, where bulls drove the benchmark KSE-100 index sharply higher in early trading before gains were trimmed by the close.

Within minutes of the opening bell, the index surged 2,306 points, or 1.27%, reaching intra-day high of 170,899. Investor sentiment remained upbeat, aided by improving macroeconomic signals and ample liquidity.

Fuelling the upward trajectory was a key development related to funding. The State Bank of Pakistan (SBP) confirmed the receipt of $2 billion in deposits from Saudi Arabia, which was expected to bolster foreign reserves and ease near-term external financing pressure, factors that typically act as strong triggers for equity market rallies.

During the session, the index touched the low of 168,941, reflecting some volatility amid intra-day consolidation due to profit-taking. The market eventually settled at 169,911.95, higher by 1,392.01 points, or 0.83%.

Overall, the trading pattern highlighted a sustained bullish momentum, though the pullback from highs suggested that investors opted to lock in gains. Despite that, the broader tone remains positive, with macro stability cues and continued participation likely to support the market in the near term.

Arif Habib Limited (AHL), in its report, wrote that it was the continuation of the upside for the KSE-100 index, which saw another intra-day move into the 170ks. Some 66 shares rose while 32 fell with UBL (+2.87%), OGDC (+3.48%) and Hub Power (+2.2%) contributing the most to the index gains. In contrast, Bank AL Habib (-1.95%), Meezan Bank (-0.68%) and Bank Alfalah (-1.56%) were the biggest index drags.

Among geopolitical developments, Pakistan emerged as the facilitator of US-Iran peace negotiations. Washington was considering holding a second round of talks with Tehran in Pakistan and was optimistic about reaching a deal. Additionally, Turkey was preparing to host talks later this week on creating a regional security platform with Pakistan, Saudi Arabia and potentially Egypt.

In economic news, Pakistan's government was planning to hand over control of the national air carrier to an Arif Habib Group-led consortium by the end of April. "Heading into the last session of the week, the KSE-100 was up 1.6% week-on-week with support at 165k," AHL said.

Overall trading volumes decreased to 972.7 million shares compared with Wednesday's total of 1.21 billion. The value of traded shares stood at Rs43.9 billion.

On the ready market, shares of 489 companies were traded. Of these, 307 rose, 139 fell and 43 remained unchanged. Unity Foods emerged as the volume leader with trading in 70.6 million shares, gaining Rs0.95 to close at Rs9.36. Foreign investors bought shares worth Rs742.4 million, the National Clearing Company reported.