Stocks start week with gain of 1,868 points, surge to new high

KARACHI: Stocks started the week on a positive note where the benchmark KSE-100 index surged by 1,868 points ahead of the policy rate announcement by the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP), which reduced the discount rate by 2.0 per cent.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged by 1,867.61 points or 1.63 per cent to 116,169.41 points against 114,301.80 points recorded in the last session. The highest index of the day remained at 116,681.59 points while the lowest level was recorded at 115,346 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bullish led by scrips across the board as investors eyed a significant SBP rate cut amid thin inflation and a drop in short-term government bond yields near to 11.99 per cent.”

He said that easing political noise, resolve over IPP contracts and upbeat economic indicators for trade balances, forex reserves and remittances played a catalyst role in the record surge at the PSX.

The KSE-30 index increased by 853.37 points or 2.38 percent to 36,658.81 points against 35,805.43 points.Traded shares increased by 352 million shares to 1,470.661 million shares from 1,118.57 million shares. The trading value rose to Rs66.628 billion from Rs59.511 billion. Market capital expanded to Rs14.811 trillion against Rs14.587 trillion. Of the 477 companies active in the session, 246 closed in green, 194 in red and 37 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said the market continued its strong upward momentum, extending its record-breaking rally as investors anticipated Monday’s upcoming monetary policy review. This was further bolstered by significant buying activity from local institutions, with the index hitting an intraday peak of 116,682.

The index’s rise was primarily driven by strong performances from MARI, FFC, PPL, OGDC and HUBC, which collectively contributed 1,749 points.

The highest increase was recorded in Nestle Pakistan Limited, which rose by Rs163.27 to Rs7,586.36 per share, followed by Rafhan Maize Products Company Limited, which increased by Rs108.58 to Rs8,999.09 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs154.99 to Rs20,820 per share; Khyber Textile Mills Limited followed it, which closed lower by Rs64.63 to Rs720.32 per share.

Brokerage Arif Habib Ltd said that the Pakistan Stock Exchange (PSX) continued its upward trajectory on Friday.Analysts noted that a key signal for a potential loss of momentum would be a divergence between benchmark indices, where one index fails to reach a new high. However, no such indication currently exists, as all key benchmarks continue to hit new highs.

With the market maintaining strong upward momentum, the path of least resistance remains to the upside, supported by robust investor sentiment and positive macroeconomic indicators.

WorldCall Telecom remained the volume leader with 403.228 million shares which closed higher by 13 paisas to Rs1.92 per share. Cnergyico PK with 59.584 million shares followed it, which closed higher by 11 paisas to Rs7.12 per share.

Other significant turnover stocks included Pak Refinery, Pak Elektron, Sui South Gas, Fauji Foods Ltd, K-Electric Ltd, Pak Int Bulk, BO Punjab and TPL Properties. In the futures market, 306 companies recorded trading, 166 of which increased, 137 decreased, and 3 remained unchanged.