Stocks end week with gain of 815 points

KARACHI: Stocks increased 815 points to another all-time high on Friday amid key policy rate speculations, where investors expect a higher cut during the next monetary policy meeting.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged by 814.98 points or 0.75 per cent to 109,053.95 points against 108,238.97 points recorded in the last session. The highest index of the day remained at 109,478.09 points while the lowest level was recorded at 108,550.87 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bullish fuelled by selected scrips led by the oil and banking sectors amid speculations ahead of the SBP’s key policy rate announcement in the coming days and the finance minister’s assurance to cover slippages over IMF targets before the first review under the EFF.”

He said that the $3 billion Saudi Fund deposit rollover supporting forex reserves, rupee stability and upbeat economic indicators played a catalyst role in the new record close at the PSX.The KSE-30 index increased by 155.56 points or 0.46 per cent to 33,849.09 points against 33,693.53 points.

Traded shares increased by 50 million shares to 1,697.842 million shares from 1,647.134 million shares. The trading value dropped to Rs57.487 billion from Rs63.229 billion. Market capital expanded to Rs13.855 trillion against Rs13.745 trillion. Of the 468 companies active in the session, 233 closed in green, 200 in red and 35 remained unchanged.

Analyst Nabeel Haroon at Topline Securities said that while continuing its momentum, the KSE-100 index extended its gain by 815 points (0.75 percent) to close at the 109,036 level. “This gain can be attributed to news that Saudi Arabia has agreed to extend the $3 billion deposit held in the State Bank of Pakistan (SBP) for another year offering essential assistance to Pakistan’s foreign exchange reserves,” he said.

Traded value-wise UBL (Rs5.09 billion), MARI (Rs2.3 billion), Engro (Rs2.25 billion), SEARL (Rs2.08 billion) and PAEL (Rs2.05 billion) dominated the activity. Point-wise top contribution to the index came from Engro, UBL, MEBL, DAWH and MARI, which cumulatively contributed 956 points to the index.

The highest increase was recorded in Rafhan Maize Products Company Limited, which rose by Rs422.41 to Rs8,512.85 per share, followed by Sapphire Fibres Limited, which increased by Rs55.98 to Rs1,270 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs64.41 to Rs20,616.67 per share; Pakistan Tobacco Company Limited followed it, which closed lower by Rs23.06 to Rs1,266.07 per share.

Brokerage Arif Habib Ltd stated the KSE-100 index extended its winning streak for the seventh consecutive week, posting a strong 7.0 per cent week-on-week (WoW) gain amid robust market momentum. While the current momentum in the market remains strong, analysts caution that the risk of sharp corrections in the coming weeks cannot be ignored, as the market appears overextended compared to historical benchmarks.

Support continues to hold firm at the 100,000 level, offering a solid base for future movements despite the potential for near-term volatility. WorldCall Telecom remained the volume leader with 368.901 million shares which closed higher by 16 paisas to Rs1.75 per share. BO Punjab with 115.553 million shares followed it, which closed higher by 75 paisas to Rs10.84 per share.

Other significant turnover stocks included Cnergyico PK, Pak Elektron, Power Cement, Telecard Limited, K-Electric Ltd, PTCL, Pak Int Bulk and Ghani Glo Hol. In the futures market, 306 companies recorded trading, 163 of which increased, 142 decreased, and one remained unchanged.