Stocks surge 499 points amid hopes for rating upgrade

KARACHI: Stocks closed higher by 499 points on Thursday to another all-time high level amid hopes for a rating upgrade after the finance minister’s assurance on macroeconomic stability.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index increased by 499.05 points or 0.54 per cent to 92,520.49 points against 92,021.44 points recorded in the last session. The highest index of the day remained at 92,694.54 points while the lowest level was recorded at 92,185.69 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed at new all-time high as investor eye ratings upgrade after FM assurance on macroeconomic stability and the MSCI expected standard index weight revised at 4.4 per cent from Nov 26 owing to outperformance and liquidity.”

He said that bull run in global equities, falling lending rates, over $3 billion remittances in October and surging exports catalysed the record bullish close at the PSX.The KSE-30 index increased by 97.09 points or 0.34 per cent to 28,761.88 points against 28,664.80 points.

Traded shares decreased by 211 million shares to 678.788 million shares from 889.166 million shares. The trading value dropped to Rs24.827 billion from Rs30.474 billion. Market capital expanded to Rs11.876 trillion against Rs11.816 trillion. Of the 449 companies active in the session, 257 closed in green, 145 in red and 47 remained unchanged.

Maaz Mulla, analyst at Topline Securities, said the KSE-100 index closed at 92,520, opening on a positive note and reaching an intraday high of 673 points, driven by the recent Ijara Sukuk auction whereby the cut-off yield on 1-year Sukuk fell to 10.99 per cent, signalling a potential yield decline across all tenors in the upcoming T-bills and PIBs auction.

Following the prime minister’s recent visit to Saudi Arabia, a delegation led by the power minister has been dispatched, with anticipated announcements of new Saudi investments, including Reko Diq as a likely flagship project, he added that this development sparked investor interest in OGDC and PPL.

Stocks that led the index included Engro, DAWH, OGDC, HUBC, and EFERT, collectively adding 475 points. In contrast, major laggards -- SYS, HBL, MEBL, KOH, and CHCC -- together subtracted 173 points.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs86.32 to Rs18,986.99 per share, followed by Hoechst Pakistan Limited, which increased by Rs48.07 to Rs2,401.07 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs101.45 to Rs7,305.21 per share; Bhanero Textile Mills Limited followed it, which closed lower by Rs50.09 to Rs782.05 per share.

Brokerage Arif Habib Ltd said that the KSE-100 index continued its upward trend on Thursday, putting in significant distance from the 92,000 level, currently up 1.8 per cent week-on-week as it heads into the final session.

The MSCI has updated its FM Small Cap Index with eight Pakistani stocks added: CPHL, CSAP, FCL, FLYING, PAKOXY, SHFA, THCCL, and TRG, while Fauji Fertilizer Bin Qasim Limited (FFBL) has been removed. Pakistan’s representation in the MSCI Frontier Markets (FM) Index now holds a weight of approximately 4.5 per cent, and in the MSCI FM Small Cap Index, it stands at around 10 per cent.

The outlook remains positive as the KSE-100 is positioned to continue its upward momentum in the sessions ahead. BO Punjab remained the volume leader with 62.920 million shares which closed higher by 36 paisas to Rs6.57 per share. Kohinoor Spinning followed it with 46.527 million shares, which closed higher by 54 paisas to Rs7.83 per share.

Other significant turnover stocks included K-Electric Ltd., Hascol Petrol, Flying Cement, Pace (Pak) Ltd., Cnergyico PK, Power Cement, WorldCall Telecom and Pak Elektron.In the futures market, 308 companies recorded trading, of which 163 increased, 140 decreased and 5 remained unchanged.