KSE-100 posts third-highest gain of 3,370 points

KARACHI: Stocks witnessed the third highest gain on Thursday with the KSE-100 surging by 3,370 points amid a significant decline in T-bill cut-off yields. The benchmark index recorded a remarkable increase of 185 per cent; from 40,000 to 112,000 in just 18 months.

The KSE-100 index surged by 3,370.29 points or 3.04 per cent to 114,180.51 points against the 110,810.22 points recorded in the previous session. The highest index of the day remained at 114,408.62 points while the lowest level was recorded at 111,308.66 points.

CEO of Topline Securities Muhammed Sohail said, “[The KSE-100’s gain of over 3,000 points] marks the best comeback in the Pakistan Stock Market’s 75-year history, tripling in value and showcasing unmatched resilience.

He said the KSE-100 index posted its third-highest gain ever, soaring 3,370 points to close at 114,181. “Remarkably, nine of the top 10 largest gains have been recorded in 2024.” he said.

Muhammad Awais Ashraf, director research at AKD Securities, said, “A significant decline in T-bill cut-off yields in Wednesday;s auction, ahead of the monetary policy announcement, has further strengthened investor confidence amid an improving macroeconomic outlook.”

Companies offering higher dividend yields and benefiting from structural reforms and policy rate cuts are contributing the most to the index’s gains,” he said.

The KSE-30 index increased by 1,272.1 points or 3.69 per cent to 35,701.35 points against 34,429.24 points.

Traded shares increased by 389 million shares to 1,469.558 million shares from 1,080.023 million shares. The trading value rose to Rs67.278 billion from Rs47.139 billion. Market capital expanded to Rs14.517 trillion against Rs14.151 trillion. Of the 464 companies active in the session, 299 closed in green, 132 in red and 33 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the stock market extended its historic rally as euphoria gripped investors following a significant decline in T-bill auction yields. This development fuelled aggressive buying across the board, driving the market to new heights.

The remarkable performance highlights sustained optimism, with the market now rallying an astounding 185 per cent over the past 18 months. “Today’s broad-based buying saw blue-chip and growth stocks in key sectors like fertiliser, E&Ps, and technology leading the charge, reflecting robust investor confidence amid a shifting macroeconomic environment.”

Top contributors to the index’s rise included FFC, MARI, PPL, PSO, Engro, and OGDC, collectively adding 2,028 points to the benchmark index. The highest increase was recorded in Nestle Pakistan Limited, which rose by Rs199.92 to Rs7,355.19 per share, followed by Rafhan Maize Products Limited, which increased by Rs149.12 to Rs8,750 per share. A significant decline was noted in Macter International Limited, which fell by Rs30.16 to Rs424.69 per share; Hallmark Company Limited followed it, which closed lower by Rs24.24 to Rs800.53 per share.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed to a new all-time high after short term government bonds yields slashed up to 100bps at 11.99 per cent in SBP auction.” This big drop in interest rates suggests, according to him, that the central bank might soon lower its main interest rate.

Easing political noise on the possible government-PTI patch up and the receding geopolitical tensions led positive sentiments. Surging global crude oil prices, upbeat data on POL sales -- up by 15 per cent YoY -- car sales up by 62 per cent YoY and cement dispatches up by 5.0 per cent YoY for November and the ADB raising its growth forecast to 3.0 per cent for FY25 played a catalyst role in the record surge at the PSX, he said.

WorldCall Telecom remained the volume leader with 232.925 million shares which closed higher by 14 paisas to Rs1.79 per share. Cnergyico PK with 80.186 million shares followed it, which closed higher by 10 paisas to Rs7.21 per share.

Other significant turnover stocks included Pak Int. Bulk, K-Electric Ltd., Fauji Foods Ltd, Lotte Chemical, Sui South Gas, Treet Corp, Hascol Petrol and Symmetry Group Ltd. In the futures market, 306 companies recorded trading, 226 of which increased, 77 decreased, and 3 remained unchanged.