KSE-100 sees highest single-day surge as investors welcome budget

KARACHI: Pakistan stocks recorded multiple gains with a record single-day point-wise increase, closing to an all-time high level as investors in the capital market welcomed the FY25 budget, which is considered neutral to positive for the stock market.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share Index surged by 3,410.73 points, the highest gain in a single day, or 4.69 per cent to 76,208.16 points against 72,797.43 points recorded in the last session. The highest index of the day remained at 76,338.15 points while the lowest level was recorded at 73,329.80 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks showed record surged after the budget turned out to be investor friendly owing to the status quo in tax measures for filers and raising SOE dividend projections at Rs138 billion for FY25.”

He said the “government’s focus on appeasing the IMF with the Rs18.9 trillion budget outlay for the $8 billion bailout programme; setting a higher GDP growth target of 3.6 per cent; a lower fiscal deficit target; Rs30 billion projections for privatization proceeds played a catalyst role in bullish close.

The KSE-30 index increased by 1,224.99 points or 5.28 per cent to 24,438.30 points against 23,213.31 points.

Traded shares surged by 342 million shares to 635.525 million shares from 293.083 million shares. The trading value increased to Rs30.745 billion from Rs10.541 billion. Market capital expanded to Rs10.133 trillion against Rs9.783 trillion. Of 425 companies active in the session, 294 closed in green, 87 in red and 44 remained unchanged.

Naveed Nadeem, an analyst at Topline Securities, said that following the announcement of the budget for 2024-25, Pakistan’s stock index experienced its most significant surge, bringing an end to uncertainties surrounding potential hikes in capital gains or dividend taxes. The KSE-100 index skyrocketed by 3,411 points or 4.69 per cent, reaching a record high of 76,208. This surge marked the largest single-day increase in point terms in history.

Throughout the trading day, the index maintained a positive trajectory, hitting an intraday high of 76,338.15 and a low of 73,329.80 points.Power, bank, E&P and fertiliser sectors contributed positively where HUBC, MCB, UBL, OGDC and FFC added 1,067 points.

The highest increase was recorded in Unilever Pakistan Foods Limited shares, which rose by Rs149.99 to Rs18,199.99 per share, followed by Mari Petroleum Company Limited, which increased by Rs137.66 to Rs2,685.08 per share. A significant decline was noted in Colgate-Palmolive (Pakistan) Limited, which fell by Rs80.54 to Rs1,167.11 per share, Sapphire Fibres Limited followed it, which closed lower by Rs50 to Rs1,400 per share.

Brokerage Arif Habib Ltd stated contrary to widespread fears, the Pakistan Stock Exchange (PSX) experienced a significant rally after the anticipated harsh budget failed to materialize.Week-over-week (WoW), the KSE-100 index is currently up by 3.2 per cent, with one more session remaining before the Eid holidays. This robust performance comes as a relief to investors who had been bracing for potentially negative fiscal measures.

The market’s resurgence has pushed the benchmarks back above the critical levels of 75,000 for the KSE-100 and 24,000 for the KSE-30. With this renewed momentum, the indices are well-positioned to set new records on the upside.

The trading activity today reflects a renewed investor confidence, dispelling earlier apprehensions about the budget’s impact on the market. As the market heads into the Eid holidays, there is a cautious optimism that the current upward trajectory can be sustained, provided the economic policies continue to support growth and stability.

Market analysts suggest that the relief rally is a testament to the resilience of the PSX and the underlying strength of the Pakistani economy. The session ahead of the Eid holidays will be closely watched, as investors look for further cues on the market’s direction post-budget.

K-Electric Ltd remained the volume leader with 66.835 million shares which closed higher by 8 paisas to Rs4.72 per share. Fauji Cement followed it with 39.803 million shares, which closed higher by Rs1.87 to Rs24.14 per share.Other significant turnover stocks included WorldCall Telecom, Oil & Gas Dev, DGK Cement, The Searle Company, Pak Elektron, Pak Petroleum, Pervez Ahmed Co and Maple Leaf.In the futures market, 311 companies recorded trading, of which 278 increased, 31 decreased and 2 remained unchanged.