Stocks end higher on export, SOE reform plans

Stocks closed higher on Friday, boosted by rising exports, clarity on the election date and optimism over the sell-off of state-owned enterprises, traders said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained 219.02 points or 0.47 percent to close at 46,421.15 points. The highest index of the day remained at 46,500.45 points while the lowest level was recorded at 46,182 points.

“Stocks close higher amid reports of surging exports supporting rupee recovery and rising FX reserves near to $7.7 billion,” said Ahsan Mehanti, an analyst at Arif Habib Corp.

Mehanti said oil stocks outperformed on surging global crude oil prices, while the announcement of the Election Commission of Pakistan (ECP) on the general elections scheduled in Januray and the government’s decision to deliberate on the sell-off of sick state-owned enterprises also played a catalytic role in the bullish close.

The KSE-30 index also increased by 52.76 points or 0.33 percent to close at 16,260.22 points. Traded shares remained flat at 172 million shares. The trading value rose to Rs6.269 billion from Rs5.345 billion. Market capital expanded to Rs6.873 trillion against Rs6.840 trillion. Out of 323 companies active in the session, 197 closed in green, 99 in red and 27 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said the benchmark index largely traded in a positive zone during the trading session. "Major positive contributions to the index came from HUBC, PPL, FFC, DAWH and UNITY, as they cumulatively contributed 138 points; whereas SYS, ENGRO, MTL, NESTLE and TRG lost value to weigh down on the index by -60 points," he added.

The highest increase was recorded in Sapphire Tex., which rose by Rs64.93 to Rs1,192.93 per share, followed by Sapphire Fiber, which increased by Rs57.65 to Rs1,205.65 per share. A significant decline was noted in Nestle Pakistan, which fell by Rs90 to Rs7,000 per share, followed by Pak Services, which decreased by Rs14.90 to Rs725 per share.

Brokerage Arif Habib Ltd said the market’s ability to maintain its position above 46,000 points this week was seen as highly constructive, setting a positive tone for further gains in the weeks to come.

“The market participants are now looking forward to the upcoming week with optimism, anticipating further gains and setting their sights on the 46,900 mark,” it said in a note.

One of the notable moves in the market was seen in HUBC, which surged by 2.64 percent. This rally was driven by expectations of a Rs6 dividend announcement following the completion of the CPHGC project. If this materializes, it would potentially take the FY24 DPS for HUBC to Rs23.75.

Additionally, LOTCHEM, SCBPL, and SAZEW all had impressive gains of the maximum of 7.5 percent allowed in a single trading session.

Cnergyico PK remained the volume leader with 10.563 million shares which closed higher by 11 paisas to Rs3.09 per share. It was followed by WorldCall Telecom with 10.059 million shares, which closed lower by one paisa to Rs1.14 per share.

Other significant turnover stocks included Unity Foods Ltd, Hub Power Co., K-Electric Ltd., Dewan Motors, Pak Petroleum, Maple Leaf, Nishat Chun Pow and Bankislami Pak.

Shares’ turnover in the future contracts increased to 96.241 million shares from 39.654 million shares.