KARACHI: The Pakistan Stock Exchange (PSX) extended its bullish run for the fifth straight session on Wednesday, with the KSE-100 index surging 973 points to reach a new all-time high. The rally was fuelled by strong institutional buying and optimism surrounding progress on circular debt resolution, further boosting investor confidence.
The KSE-100 index increased by 972.94 points, or 0.83 per cent, to 117,974.03 points, up from the 117,001.09 points recorded in the last session. The highest index of the day remained at 118,243.63 points, while the lowest level was recorded at 116,882.8 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said that stocks closed bullish amid speculations about a possible resolution of Pakistan’s power sector circular debt, which currently stands at Rs1.5 trillion following reports that the International Monetary Fund (IMF) is willing to approve the Pakistan government’s circular debt management plan, but likely with certain conditions [to address the circular debt, the government plans to raise Rs1.25 trillion from commercial banks, possibly through loans or bond issuance].”
Higher global crude oil prices and expectations over a cut in industrial power tariff played a catalyst role in the bullish close at the PSX, he added.
The KSE-30 index increased by 361.4 points 1.0 per cent to 36,495.64 points against 36,134.24 points.
Traded shares rose by 95 million shares to 544.2 million shares against 449.484 million shares. The trading value increased to Rs32.31 billion from Rs29.178 billion. Market capital expanded to Rs14.355 trillion against Rs14.266 trillion. Of the 449 companies active in the session, 221 closed in green, 157 in red and 71 remained unchanged.
Analyst Naveed Nadeem at Topline Securities said the KSE-100 index hit a record high of 117,974 points, rising by 973 points (0.83 per cent). The market continued its upward momentum, fuelled by strong buying activity from local institutions, peaking at 118,244 points during the day.
The rally was primarily driven by HUBC, MARI, ENGROH, SYS and PPL, which together contributed 551 points to the index. On the other hand, FFC, EFERT, and POL exerted downward pressure, pulling the index down by 54 points.
The highest increase was recorded in Exide Pakistan Limited, which rose by Rs74.83 to Rs823.10 per share, followed by Macter International Limited, which increased by Rs36.71 to Rs403.77 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs82.50 to Rs23,400 per share; Nestle Pakistan Limited followed it, which closed lower by Rs64.84 to Rs7,402.33 per share.
Analyst Muhammad Hasan Ather at JS Global said the bulls continued to dominate the trading floor as the benchmark index managed to close upwards for the fifth straight session at an all-time high level led by oil and gas, power and fertiliser sector.
“This continuation of bullish activities was primarily attributed to likely resolution of circular debt and approval of IMF programme,” he said. “We are still positive on the market and advise investors to adopt a ‘buy on dips’ strategy.”
Pak Int Bulk remained the volume leader with 52.151 million shares, which closed higher by 39 paisas to Rs11.05 per share. Pak Elektron, with 36.133 million shares, followed it, which closed higher by Rs3.19 to Rs48.14 per share.
Other significant turnover stocks included WorldCall Telecom, Fauji Cement, TRG Pak Ltd, BO Punjab XD, Hub Power Co. XD, Hascol Petrol, Treet Corp and Image Pakistan.
In the futures market, 315 companies recorded trading, 208 of which increased, 102 decreased and five remained unchanged.