Stocks rise 410 points amid earnings season rally at PSX

KARACHI: Stocks increased for the second consecutive session on Wednesday in the earnings season rally at the Pakistan Stock Exchange (PSX).

The PSX’s benchmark KSE-100 share index increased by 409.92 points or 0.52 per cent to 79,397.01 points against 78,987.09 points recorded in the last session. The highest index of the day remained at 79,704.37 points while the lowest level was recorded at 79,071.48 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed higher in the earnings season rally at the PSX on expectations for a SBP policy rate cut on July 29.”He said the prime minister’s resolve for $60 billion in exports in the next three years is hinting at low-cost power. The finance minister hopes that Moody’s raising its ratings on government initiatives to reform and improve economic indicators was a catalyst for the bullish close at the PSX.

The KSE-30 index increased by 153.05 points or 0.6 per cent to 25,518.11 points against 25,365.07 points.Traded shares increased by 70 million shares to 386.980 million shares from 316.245 million shares. The trading value dropped to Rs14.899 billion from Rs17.074 billion. Market capital expanded to Rs10.547 trillion against Rs10.500 trillion. Of 430 companies active in the session, 228 closed in green, 155 in red and 47 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the Pakistan stock market exhibited positive momentum, with the index reaching a high of 79,704 points earlier in the day before closing at 73,397 points. This marks an increase of 409 points or 0.52.

Throughout the day, stocks such as FFC, MEBL, TRG, FABL, and EFERT contributed positively, collectively adding 300 points to the index. Conversely, UBL, HUBC, and DAWH had a negative impact, collectively subtracting 110 points.

The highest increase was recorded in Nestle Pakistan Limited shares, which rose by Rs70 to Rs7,020 per share, followed by Hoechst Pakistan Limited, which increased by Rs48.65 to Rs1,598.86 per share. A significant decline was noted in Rafhan Maize Products Company, which fell by Rs95.87 to Rs7,506.66 per share; Bata Pakistan Limited followed it, which closed lower by Rs50.28 to Rs1,729.72 per share.

Brokerage Arif Habib Ltd stated that the PSX witnessed further gains on Tuesday, with the KSE-100 and KSE-30 indices both rising significantly.TRG was the standout performer, gaining the maximum on news that IBEX announced the launch of Wave iX Translate, a real-time translation service supporting over 150 languages. This announcement fuelled fresh momentum for TRG, with the potential to trade back towards its May highs of Rs70.

The 80k level remains a critical benchmark for the KSE-100, serving as an indicator for the sustainability of the current upswing. Key support levels are identified between 77.5k and 78k. Analysts are closely monitoring these levels to gauge the market’s resilience and potential for further gains.

The continued upward movement of the KSE-100 and KSE-30 indices reflects investor confidence bolstered by positive corporate announcements and innovations. The market's ability to maintain gains above the 80k mark will be pivotal in determining the trajectory of the indices in the coming days.

Silk Bank Ltd remained the volume leader with 36.867 million shares which closed higher by 10 paisas to Rs1.10 per share. Hascol Petrol followed it with 25.777 million shares, which closed higher by 61 paisas to Rs6.69 per share.

Other significant turnover stocks included PIA Holding Company, Al-Shaheer Corp, Dewan Motors, Agritech Limited, WorldCall Telecom, TPL Properties, Fauji Foods Ltd and Fauji Fert Bin.In the futures market, 303 companies recorded trading, of which 189 increased, 109 decreased and 5 remained unchanged.