PSX remains bullish with 851-point rise

KSE-100 settles at 185,372, driven by banking, E&P stocks; analysts eye 190k

KARACHI:

The KSE-100 index maintained its bullish momentum on Friday, surging by a little over 850 points to close above 185,370, pushing its weekly gains to 3.2%.

Strong performances in banking and oil & gas stocks, alongside positive macroeconomic cues including expectations of lower oil prices and the upcoming policy developments, lifted investor sentiment. Market analysts remained optimistic, projecting further upside towards the 190,000 level in the coming week.

At the close of trading, the benchmark KSE-100 index posted a strong gain of 851.25 points, or 0.46%, and settled at 185,372.21.

Arif Habib Limited (AHL) observed that the KSE-100 index closed the week on a positive note, gaining 0.46% on Friday to push its week-on-week growth to 3.2%. A total of 58 stocks advanced while 41 declined. UBL (+1.19%), OGDC (+1.87%), and Fauji Fertiliser (+0.78%) were the biggest contributors to the index gains, while Service Industries (-2.88%), Engro Fertilisers (-0.74%), and Bank Alfalah (-0.64%) emerged as major drags.

Finance Minister Muhammad Aurangzeb is expected to visit Washington in the next two weeks for discussions aimed at reducing tariffs as much as possible to support exporters. Meanwhile, Pakistan plans to tap the Eurobond market to secure lower-cost funding. The State Bank of Pakistan (SBP) noted that the country's improved macroeconomic fundamentals should support more favourable pricing. The SBP also expects foreign exchange reserves to cross $20 billion by the end of summer, with remittances projected to reach $44 billion in 2027.

"The KSE-100 index is moving as anticipated, and the coming week is likely to see continued strong gains until the current upside target of 190,000 points is achieved. Support is seen in the 180,500-184,000 zone," said AHL.

Topline Securities, in its market review, noted that the KSE-100 extended its bullish momentum, gaining 0.5% to close at 185,372 points, as lower oil prices and their positive implications for Pakistan's external account continued to support investor sentiment.

The largest positive contribution to the index came from UBL, OGDC, FFC, Mari Energies, and Pakistan Petroleum, which collectively added 611 points. In trading activity, the exploration & production (E&P) sector dominated in terms of traded value. OGDC led with Rs3.08 billion, followed by Mari with Rs2.43 billion and PPL with Rs1.81 billion, said Topline.

KTrade Securities said that trading activity remained healthy, with 314 million shares traded in the KSE-100 index. TPL REIT Fund 1 led volumes with 73 million shares, followed by Lotte Chemical (21 million) and PTCL (16 million). Commercial banking and oil & gas sectors accounted for the bulk of the benchmark's gains. Major positive contributions came from UBL, OGDC, FFC, Mari, PPL, and Meezan Bank.

Going forward, investor sentiment is likely to remain cautiously optimistic, with earnings' expectations and macroeconomic developments expected to guide market direction, while sector-specific news flow may continue to drive selective buying, added KTrade.

Overall trading volumes stood at 815.65 million shares compared with the previous session's tally of 994.75 million. The value of shares traded during the day was Rs42.63 billion.

Shares of 494 companies were traded. Of these, 256 stocks closed higher, 211 fell, and 27 remained unchanged.

TPL REIT Fund 1 was the volume leader with trading in 72.95 million shares, losing Rs0.04 to close at Rs10.60. It was followed by TPL Corp with 48.41 million shares, losing Rs0.89 to close at Rs16.79, and TPL Properties with 34.29 million shares, gaining Rs0.41 to close at Rs11.64. Foreign investors bought shares worth Rs441 million, the National Clearing Company reported.