Bull run continues as KSE-100 surges by 1,275 points to new highs

KARACHI: The bull run continued at the Pakistan Stock Exchange (PSX) on Friday, and the benchmark KSE-100 index surged by 1,275 points to close at a new high led by oil, banking and pharma stocks amid strong valuations.

The index surged 1.27 per cent to 101,357.32 points against 100,082.77 points recorded in the last session. The highest index of the day remained at 101,496.18 points while the lowest level was recorded at 99,822.62 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed at a new all-time high led by oil, banking and pharma scrips on strong valuations.”He said that speculations ahead of the SBP policy rate announcement next month; surging SBP forex reserves; and falling government treasury bond yields amid thin inflation played a catalyst role in the new record close at the PSX.

The KSE-30 index increased by 294.98 points or 0.95 per cent to 31,488.27 points against 31,193.29 points.Traded shares decreased by 249 million shares to 915.509 million shares from 1,164.794 million shares. The trading value dropped to Rs35.978 billion from Rs39.776 billion. Market capital expanded to Rs12.885 trillion against Rs12.716 trillion. Of the 454 companies active in the session, 265 closed in green, 137 in red and 52 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said another positive session was observed at the exchange as the KSE-100 index gained 1,275 points (1.27 per cent) to close at the 101,357 level. “This positivity in the market can be attributed to news that the SBP has received $500 million from the Asian Development Bank as proceeds of a loan to the government of Pakistan for the Climate Change and Disaster Resilience Enhancement Program (CDREP); this disbursement will most likely enable the SBP to end the month November 2024 around the $12 billion mark,” he said.

The banking sector extended its gain as it closed up 1.8 per cent while the removal of the minimum deposit rate (MDR) requirement for corporate deposit continues to attract investor interest in the sector.

Value-wise PPL (Rs1.93 billion), PSO (Rs1.88 billion), SEARL (Rs1.63 billion), OGDC (Rs1.53 billion) and ATRL (Rs1.29 billion) dominated market activity. Point-wise, the top contribution to the index came from PPL, SRVI, BAFL, ENGRO and SEARL, as they cumulatively contributed 400 points to the index.

The highest increase was recorded in Services Industries Limited, which rose by Rs122.67 to Rs1,349.36 per share, followed by Rafhan Maize Products Company Limited, which increased by Rs114.86 to Rs7,992.86 per share. A significant decline was noted in Exide Pakistan Limited, which fell by Rs32.09 to Rs839.22 per share; Nestle Pakistan Limited followed it, which closed lower by Rs13.20 to Rs6,570.67 per share.

Analyst Mubashir Anis Naviwala at JS Global said that bull run continued as the benchmark KSE-100 index reached a new high, driven by improving macroeconomic indicators and strong expectations of further monetary easing. “We believe the economic revival will persist, and equities are likely to sustain their bullish momentum, going forward,” he expected.

BO Punjab remained the volume leader with 95.056 million shares which closed higher by 35 paisas to Rs9.2 per share. K-Electric Ltd. with 55,535 million shares followed it, which closed higher by 18 paisas to Rs5.58 per share.

Other significant turnover stocks included Sui South Gas, Bank Makramah, PTCL, Waves Home App, Hascol Petrol, Symmetry Group Ltd, WorldCall Telecom and Kohinoor Spinning. In the futures market, 307 companies recorded trading, 199 of which increased, 101 decreased, and 7 remained unchanged.