KSE-100 races past 78,000 points, closes at all-time high

KARACHI: Stocks continued positive momentum post-holiday period and reached an all-time high index on Thursday amid a strong economic outlook with major activity in the banking sector.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share Index surged by 2,094.76 points or 2.73 per cent to 78,801.53 points against 76,706.77 points recorded in the last session. The highest index of the day remained at 78,890.37 points while the lowest level was recorded at 76,896.82 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed all-time high on the strong economic outlook.”He said Fitch rating projections for the prospect of an IMF deal; narrow fiscal deficit; reduced external pressures; reduction of the current account deficit to 0.3 per cent of the GDP; investor speculations over a surge in SOE dividends; and government’s privatization proceeds in FY25 played a catalyst role in the record close.

The KSE-30 index increased by 739.54 points or 2.99 per cent to 25,437.99 points against 24,698.46 points.Traded shares increased by 57 million shares to 452.637 million shares from 395.897 million shares. The trading value decreased to Rs20.675 billion from Rs21.366 billion. Market capital expanded to Rs10.421 trillion against Rs10.178 trillion. Of 447 companies active in the session, 256 closed in green, 133 in red and 58 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the positive run of the index was mainly driven by the banking sector where UBL, MCB, HBL, BAHL, ABL and FABL closed at their respective upper circuits contributing 1,086 points to the index.

Moreover, on the news front, the global ratings agency Fitch stated that the federal budget for 2024-25 enhances the likelihood of securing an IMF deal.From the textile sector, ILP and KTML closed on upper circuit on back of the news that Prime Minister Shehbaz Sharif has announced a reduction of Rs10.69 per unit in the electricity price for industries.

The highest increase was recorded in Rafhan Maize Products Company Limited shares, which rose by Rs86.62 to Rs7,706.92 per share, followed by Ismail Industries Limited, which increased by Rs63.93 to Rs1,443.93 per share. A significant decline was noted in Bhanero Textile Mills Limited, which fell by Rs75.99 to Rs994.59 per share, Faisal Spinning Mills Limited followed it, which closed lower by Rs17 to Rs280 per share.

Brokerage Arif Habib Ltd stated the PSX witnessed significant gains post-Eid holidays, driven primarily by the banking sector, pushing the KSE-100 index above the 78,500 mark.

The robust performance in the banking sector has set a positive tone for the market, indicating potential catch-up moves in other sectors such as cement and pharmaceuticals in the upcoming sessions. With the aggressive upward momentum, analysts anticipate continued strength in the market.

Support for the KSE-100 has now risen to 76,000. Higher prices are expected as long as the index remains above this level, maintaining the bullish outlook. The post-holiday session has reinforced confidence among investors, suggesting a promising trend in the near term.

Silk Bank Ltd remained the volume leader with 53.586 million shares which closed higher by 23 paisas to Rs1.09 per share. K-Electric Ltd followed it with 23.109 million shares, which closed higher by 10 paisas to Rs4.72 per share.

Other significant turnover stocks included Habib Bank, BO Punjab, WorldCall Telecom, Air Link Commun, Hum Network, Amtex Limited, PIA Holding Company and Faysal Bank. In the futures market, 313 companies recorded trading, of which 215 increased, 88 decreased and 10 remained unchanged.