Stocks rise to new high, close above 90k despite profit-taking

KARACHI: Continuing its upward momentum, stocks increased by 202 points on Monday to close at a new all-time high of above 90k amid financial earnings and expectations for a policy rate cut. However, some profit-taking was seen during the session.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index increased by 201.55 points or 0.22 per cent to 90,195.52 points against 89,993.97 points recorded in the last session. The highest index of the day remained at 91,054.84 points while the lowest level was recorded at 89,732.73 points.

Analyst Ahsan Mehanti at Arif Habib Corp said that stocks are at a new all-time high due to strong earnings season and investor confidence, which is driven by expectations that the SBP will announce a major rate cut later this week.

He said that the bullish global equities on easing Middle East unrest fears; the ADB’s approvals for $2.75 billion in budget support over four years; and the government’s deliberation on privatisation of SOEs played a catalyst role in the bullish activity in the PSX.

The KSE-30 index increased by 31.99 points or 0.11 per cent to 28,427.15 points against 28,395.15 points.Traded shares decreased by 128 million shares to 567.264 million shares from 695.544 million shares. The trading value dropped to Rs29.21 billion from Rs37.873 billion. Market capital expanded to Rs11.728 trillion against Rs11.689 trillion. Of the 456 companies active in the session, 179 closed in green, 222 in red and 55 remained unchanged.

Naveed Nadeem, analyst at Topline Securities, said the KSE-100 index closed at 90,196, reflecting an increase of 202 points, or 0.22 per cent. The trading session exhibited significant volatility, with the index reaching a high of 91,055 and a low of 89,733 as investors took advantage of profit opportunities.

However, upward momentum was driven by expectations of an imminent rate cut in the upcoming monetary policy, alongside strong corporate earnings, he said. “Furthermore, investor sentiment was bolstered by the announcement of a $1.4 billion loan sought from China.”

Key contributors to the index included SYS, COLG, PSO, POL and PPL, which collectively added 341 points.The highest increase was recorded in Unilever Pakistan Foods Limited shares, which rose by Rs333 to Rs19,018 per share, followed by Siemens (Pakistan) Engineering, which increased by Rs111.47 to Rs1,226.19 per share. A significant decline was noted in Hoechst Pakistan Limited, which fell by Rs147.72 to Rs2,202.28 per share; Pakistan Engineering Company Limited followed it, which closed lower by Rs85.46 to Rs838.57 per share.

Analyst Mohammed Waqar Iqbal at JS Research said, “The KSE-100 sustained its momentum today, with local investors opting to book profits around the 90,000 level. Despite this, local investors continued to drive the rally, fuelled by strong corporate profitability and expectations of an interest rate cut in the upcoming November 4, 2024, monetary policy meeting.”

“Going forward, profit-taking at current levels is advisable, with an eye on buying opportunities during market dips,” he suggested.

Fauji Foods Ltd remained the volume leader with 53.645 million shares which closed higher by 43 paisas to Rs10.44 per share. K-Electric Ltd followed it with 29.876 million shares, which closed lower by 22 paisas to Rs4.36 per share.

Other significant turnover stocks included Sui South Gas, Kohinoor Spinning, Pace (Pak) Ltd., WorldCall Telecom, The Searle Company, Sui North Gas, Silk Bank Ltd and PSO XD. In the futures market, 316 companies recorded trading, of which 132 increased, 182 decreased and 2 remained unchanged.