Stocks rally as earnings and exports outperform expectations

Stocks closed higher on Thursday, as investors cheered strong corporate earnings and positive signals on the political and economic fronts, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained 414.56 points or 0.67 percent to close at 62,393.74 points after touching an intraday low of 61,764.70 points. The KSE-30 index also increased by 195.24 points or 0.93 percent to 21,149.57 points.

“Stocks closed bullish on reports of timely general elections after the ECP security meeting and upbeat economic data for exports in Jan’24 surging by 26.9 percent year-on-year to $2.786 billion and trade deficit falling by 39 percent to $12.244 billion for Jul-Jan’24,” said Ahsan Mehanti, an analyst at Arif Habib Corp.

"Speculations over likely government resolve over the power sector circular debt issue after IMF approval played a catalytic role in the bullish close."

Traded shares decreased by 6 million shares to 270.537 million shares from 276.464 million shares. The trading value rose to Rs11.625 billion from Rs9.271 billion. Market capital narrowed to Rs9.119 trillion against Rs9.073 trillion. Out of 346 companies active in the session, 166 closed in green, 154 in red and 26 remained unchanged.

“Continuing Wednesday’s momentum, Pakistan equities went on a negative note as the KSE 100 index made an intraday low at 61,765 levels by losing 215 points," said Ali Najib, an analyst at Topline Securities.

"However, at the day’s low, value hunters opted to do some cherry-picking which helped the benchmark index to close the day at 62,394 (+415 points; up 0.67 percent) after making an intraday high at 62,480 (+501 points).”

During the day, OGDC, MEBL, MARI, PPL & ENGRO contributed positively by gaining 360 points. On the flip side, PAKT, EFERT and BAHL saw some selling interest as they lost 85 points.

The highest increase was recorded in Mari Petroleum Company Limited, which rose by Rs68.41 to Rs2,328.14 per share, followed by Philip Morris (Pakistan) Limited, which increased by Rs38.01 to Rs658 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs550 to Rs8,650 per share, followed by Ismail Industries Limited, which closed lower by Rs93 to Rs1,157 per share.

Meanwhile, Pakistan's January Consumer Prices rose by +28.34 percent year-on-year, slightly surpassing the estimated +27.70 percent.

Brokerage Arif Habib Ltd said investors' interest were exhibited in exploration and production (E&P) and refineries sectors.

"Thursday's movement set up a potential test of the first resistance level at 62.5k. The KSE-100 currently stands at -2.18 percent week-on-week as the market approaches the final session of the week."

K-Electric Ltd. remained the volume leader with 33.965 million shares which closed lower by 8 paisas to Rs4.46 per share. Soneri Bank Ltd followed it with 28.110 million shares, which closed higher by 98 paisas to Rs13.17 per share.

Other significant turnover stocks included Pak Refinery, Pak Petroleum, P.I.A.C.(A), Oil & Gas Dev., B.O. Punjab, Bank Al-Falah, Hascol Petrol and Cnergyico PK.

A total of 328 companies recorded future shares, of which 156 increased, 163 decreased and 9 remained unchanged.