Stocks gain 131 points amid support from local mutual funds

KARACHI: Stocks closed higher by 131 points on Wednesday amid consistent buying by local mutual funds that supported the market.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index increased by 130.86 points or 0.14 per cent to 93,355.43 points against 93,224.56 points recorded in the last session. The highest index of the day remained at 93,803.59 points while the lowest level was recorded at 92,943.08 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks showed recovery led by second- and third-tier scrips on strong valuations.”He said that upbeat data on car sales and the FBR’s assurances to the IMF for dropping contingency measures on revenue, which alleviated concerns over a mini budget, played a catalyst role in the positive close at the PSX.

The KSE-30 index decreased by 46.01 points or 0.16 per cent to 28,930.94 points against 28,884.93 points.Traded shares increased by 15 million shares to 807.067 million shares from 792.904 million shares. The trading value rose to Rs31.688 billion from Rs30.788 billion. Market capital expanded to Rs12.051 trillion against Rs12.031 trillion. Of the 450 companies active in the session, 196 closed in green, 191 in red and 63 remained unchanged.

Naveed Nadeem, an analyst at Topline Securities, said the market exhibited a consolidation phase, with the index reaching a peak of 93,804 and dipping to a low of 92,943. Notable, consistent buying by local mutual funds supported the market in the recent rally, he said.

The index was boosted by positive contributions from MARI, LUCK, SEARL, Engro, and POL, which collectively added 461 points. Conversely, OGDC, FFC, and MEBL experienced some profit-taking, resulting in a combined loss of 213 points to the index.

The highest increase was recorded in Rafhan Maize Products Company Limited, which rose by Rs64.96 to Rs7,601 per share, followed by Philip Morris (Pakistan) Limited, which increased by Rs38.17 to Rs827.67 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs221.80 to Rs18,858.09 per share; Mehmood Textile Mills Limited followed it, which closed lower by Rs45.57 to Rs501.58 per share.

Brokerage Arif Habib Ltd stated that in another choppy trading session, the KSE-100 Index closed with a modest gain of 0.14 per cent. In corporate developments, BAFL (-0.01 per cent) withdrew its offer to acquire SBL (-9.13 per cent) after the Saudi National Bank terminated its process to sell an 84.51 per cent shareholding in SBL. Additionally, Rousch Power approved a negotiated settlement to end its power purchase agreement, originally set to run until 2032, with payments continuing until December 31.

The KSE-100 Index remains in consolidation within the 92,000-94,000 range.WorldCall Telecom remained the volume leader with 43.291 million shares which closed lower by one paisa to Rs1.26 per share. Waves Home App followed it with 33.201 million shares, which closed higher by 90 paisas to Rs8.79 per share.

Other significant turnover stocks included Pak Refinery, K-Electric, Pak Elektron, Sui South Gas, The Searle Company, Pak Int. Bulk, Secure Logistics Gro and Ghani Glo Hol.In the futures market, 308 companies recorded trading, of which 123 increased, 176 decreased and 9 remained unchanged.