KSE-100 surges 1,782 points to close above 97k mark

KARACHI: The KSE-100 index skyrocketed 1,782 points on Thursday, hitting new highs as local mutual funds fuelled the rally, driven by a dip in government bond yields.

In its note, brokerage firm Arif Habib said that “this exceptional performance reflects a 55.9 per cent gain CYTD in 2024 and a 9.5 per cent month-to-date increase.”

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100 Index surged by 1,781.94 points or 1.87 per cent to 97,328.4 points against 95,546.46 points recorded in the last session. The highest index of the day remained at 97,437.15 points while the lowest level was recorded at 95,300.21 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed bullish led by scrips across the board as investors weigh drop in government bonds yield and robust economic data for current account surplus, remittances, exports and FDIs.”

He said that surging forex reserves and speculations over government decisions on economic reforms and privatisation played a catalyst role in the record surge at the PSX.Explaining the nature of the stock market, macroeconomist Ammar Habib Khan told The News that the KSE-100 “is just catching up to inflation, which had compounded to more than 100 per cent in the last five years. On the basis of earnings, the market remains cheap compared to historic levels, wherein the P/E (price-earnings) ratio is still lower than the long term average.”

On Thursday, the KSE-30 index increased by 614.44 points or 2.08 per cent to 30,192.45 points against 29,578.01 points.

Naveed Nadeem, an analyst at Topline Securities, said the market demonstrated a bullish trajectory, reaching an intraday high of 97,437. “Investor confidence was boosted following the army chief’s meeting with the business community. Besides this, aggressive buying in the fertiliser sector, particularly in FFC and FFBL, contributed to the positive momentum,” he said. Traded shares decreased by 169 million shares to 969.907 million shares from 1,138.411 million shares. The trading value dropped to Rs35.167 billion from Rs37.481 billion. Market capital expanded to Rs12.525 trillion against Rs12.328 trillion. Of the 457 companies active in the session, 249 closed in green, 167 in red and 41 remained unchanged.

Key contributors to the index’s upward movement included FFC, EFERT, ENGRO, FFBL, and OGDC, which collectively added 1,196 points to the index.The highest increase was recorded in Pakistan Services Limited, which rose by Rs80.17 to Rs882.84 per share, followed by Haleon Pakistan Limited, which increased by Rs80.13 to Rs882.45 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs137.27 to Rs7,956.29 per share; Nestle Pakistan Limited followed it, which closed lower by Rs74.86 to Rs6,616.31 per share.

Brokerage Arif Habib Limited said that the KSE-100 index rallied strongly, gaining 1.86 per cent day-on-day, driven by a robust recovery in fertiliser stocks. In corporate developments, HALEON surged 10 per cent on expectations of importing, launching, and eventually manufacturing the Centrum product line in Pakistan, marking a positive development in the healthcare sector.

Domestic mutual funds were active buyers in the market, providing strong support to the upward momentum. With the index now 2.8 per cent week-on-week, the KSE-100 is approaching the significant 100k milestone, which is within touching distance as the market heads into the Friday session.

Optimism around the market remains high, with momentum likely to continue if supportive buying trends persist, said the brokerage.WorldCall Telecom remained the volume leader with 95.563 million shares which closed higher by 10 paisas to Rs1.38 per share. Pace (Pak) Ltd with 51,499 million shares followed it, which closed higher by 32 paisas to Rs5.81 per share.

Other significant turnover stocks included Kohinoor Spinning, K-Electric Ltd., Treet Battery Ltd., Waves Home App, PIA Holding Company, Fauji Foods Ltd, Cnergyico PK and Telecard Limited. In the futures market, 308 companies recorded trading, 182 of which increased, 120 decreased, and 6 remained unchanged.