Stocks climb higher, close above 85k mark on strong earnings outlook

KARACHI: Maintaining the upward momentum on Tuesday, stocks closed above 85k mark for the first time amid on earnings outlook. The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index increased by 753.68 points or 0.89 percent to 85,663.98 points against 84,910.30 points recorded in the last session. The highest index of the day remained at 85,824.27 points while the lowest level was recorded at 84,897.99 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed at an all-time high led by blue chip oil scrips on a strong earnings outlook and rupee stability after reports of commitment received on $3.2 billion foreign loans, including $1.2 billion Saudi oil facility.”

He said that higher global crude oil prices, falling banking lending rates and falling euro bond yields on improving external flows played a catalyst role in the bullish activity in the PSX.The KSE-30 index increased by 243.7 points or 0.9 per cent to 27,441.13 points against 27,197.43 points.

Traded shares increased by 57 million shares to 506.565 million shares from 449.507 million shares. The trading value rose to Rs33.049 billion from Rs30.196 billion. Market capital expanded to Rs11.172 trillion against Rs11.077 trillion. Of the 448 companies active in the session, 193 closed in green, 194 in red and 61 remained unchanged.

Maaz Mulla, analyst at Topline Securities, said the KSE-100 index closed impressively at 85,663, rising by 753 points or 0.89 per cent. “This surge was fuelled by declining bond yields and an anticipated significant decrease in inflation, sparking a wave of optimism in the market that attracted investors' interest,” he said.

OGDC (+3.14 per cent) and PPL (+1.13 per cent) from the E&P sector were the stars of the trading session, where both cumulatively contributed 137 points to the inclining index.Key players like BAHL, HBL, EFERT, OGDC, and BAFL fuelled the rally, contributing a remarkable 664 points to the index.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs275 to Rs17,655 per share, followed by Hallmark Company Limited, which increased by Rs113.23 to Rs1,245.53 per share. A significant decline was noted in Khyber Textile Mills Limited, which fell by Rs35.38 to Rs415.41 per share; Khyber Tobacco Company Limited followed it, which closed lower by Rs29.13 to Rs262.14 per share.

Brokerage Arif Habib Ltd stated that the KSE-100 index crossed the 85,000-point threshold, propelled by robust performances from the banking and exploration and production (E&P) sectors.

Notably, HUBC traded 45.8 million shares (approximately $19 million), marking the highest volume seen in nearly two decades. This activity appears to indicate a selling climax at the 2023 highs (Rs112-113), suggesting that downside risks may be limited, with a potential for a rebound from these levels. Support for the index remains firmly established at 84,000points, against which higher levels are anticipated in the near term.

Hub Power Co XD remained the volume leader with 45.845 million shares which closed lower by Rs9.78 to Rs111.92 per share. Pak Petroleum followed it with 21.544 million shares, which closed higher by Rs1.43 to Rs126.70 per share.

Other significant turnover stocks included Pak Refinery, WorldCall Telecom, Oil & Gas Dev, Hum Network, Fauji CementXD, Maple Leaf, K-Electric Ltd and Symmetry Group Ltd. In the futures market, 313 companies recorded trading, of which 175 increased, 130 decreased and 8 remained unchanged.