Stocks close above record 75,000 level on current account surplus

Stocks surged to a new record high, with the benchmark KSE-100 share index closing above 75,000 for the first time on Friday, as a current account surplus fueled a seventh straight session of gains, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark index gained 411.65 points or 0.55 percent to close at 75,342.35 points. The highest index of the day remained at 75,401.12 points while the lowest level was recorded at 74,947.71 points. The KSE-30 index increased by 68.60 points or 0.28 percent to 24,214.29 points.

“Stocks closed at a new all-time high as investors weigh upbeat $491 million current account surplus data for April and surging foreign currency reserves to $14.62 billion,” said analyst Ahsan Mehanti at Arif Habib Corp.

The government resolve for an extension of $15.36 billion China IPPs debt, foreign inflows and the fertilizer makers deal to regular urea prices played a catalytic role in the record close." Traded shares increased by 89 million shares to 496.699 million shares from 407.625 million shares. The trading value rose to Rs17.631 billion from Rs16.978 billion. Market capital expanded to Rs10.133 trillion against Rs10.085 trillion. Of 386 companies active in the session, 212 closed in green, 153 in red and 21 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said that the benchmark index largely traded in the positive zone during the trading session. “This positivity in the market can be attributed to a decline in yields on T-Bills following an auction on Wednesday where yields declined across all tenors,” he said.

Major positive contributions to the index came from DAWH, HUBC, THALL, EFERT and FFC as they cumulatively contributed 222 points.The highest increase was recorded in Nestle Pakistan Limited shares, which rose by Rs149.82 to Rs7,429.82 per share, followed by Ismail Industries Limited, which increased by Rs104.14 to Rs1,548.92 per share. A significant decline was noted in Service Industries Limited, which fell by Rs23.52 to Rs778.03 per share, followed by Khyber Textile Mills Limited, which closed lower by Rs19.98 to Rs460.73 per share.

Brokerage Arif Habib Ltd stated that the benchmark index closed above the 75,000 mark, recording a 3.05 percent gain week-on-week, demonstrating strong market momentum.In macroeconomic news, Pakistan posted an April current account surplus of $491 million compared to $134 million in the previous period.

The government may seek a five-year extension to repay $15.4 billion in debt to Chinese Independent Power Producers (IPPs). This move is part of Prime Minister Shehbaz Sharif’s initiative to reduce energy costs, which includes cutting the tariff paid to power producers by an average of 0.8 rupees per kilowatt-hour from this year until 2040.

"The outlook for the coming week remains positive, with support at 74.5k and targets set at 76k and above," the brokerage said.Kohinoor Spining remained the volume leader with 44.618 million shares which closed higher by 19 paisas to Rs4.85 per share. P.I.A.C. (A) followed it with 28.760 million shares, which closed lower by Rs1.89 to Rs24.31 per share.

Other significant turnover stocks included K-Electric Ltd., Dewan Cement, Pak Elektron, The Searle Company, Dewan Motors, Unity Foods Ltd, Pak Refinery and Aisha Steel Mill.In Future Market, 318 companies recorded trading, of which 179 increased, 128 decreased and 11 remained unchanged.