KSE-100 index ends week with gain of 3,238 points

KARACHI: Having declined for three consecutive sessions, the KSE-100 Index recharged on Friday. It gained some of the losses it incurred during the week and surged by 3,238 points as investors, mostly local institutions, opted for buying, finding value at the lower levels.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged by 3,238.17 points or 3.05 per cent to 109,513.15 points against 106,274.98 points recorded in the last session. The highest index of the day remained at 109,846.64 points, while the lowest level was recorded at 105,601.04 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bullish led by scrips across the board on strong valuations.”He said the government’s deliberation on privatising SOEs, resolving IPP contracts, upbeat economic indicators for surging exports, FX reserves, and rupee stability played a catalyst role in the surge at the PSX.

The KSE-30 index increased by 1,160.1 points or 3.48 per cent to 34,513.4 points against 33,353.30 points.Traded shares decreased by 413 million shares to 754.917 million shares from 1,167.361 million shares. The trading value dropped to Rs39.424 billion from Rs56.797 billion. Market capital expanded to Rs13.958 trillion against Rs13.603 trillion. Of the 459 companies active in the session, 281 closed in green, 119 in red, and 59 remained unchanged.

Analyst Nabeel Haroon at Topline Securities said that after remaining under pressure for three consecutive trading sessions, the KSE-100 index rebounded. “Investors came in to purchase shares in the dip as they factored in all is not lost given the low-interest rate environment where further cut is expected in monetary policy, going forward,” he said.

Traded value wise Mari (Rs5.95 billion), PSO (Rs2.73 billion), HUBC (Rs2.58 billion), ATRL (Rs1.51 billion) and FFC (Rs1.46 billion) dominated the activity. Major positive contributions to the index point-wise came from FFC, MARI PA, SYS, HUBC, UBL, MCB and BAFL, cumulatively contributing 1,587 points.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs774.38 to Rs21,399.80 per share, followed by Nestle Pakistan Limited, which increased by Rs70.28 to Rs7,311.65 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs60.45 to Rs9,190.13 per share; Shahmurad Sugar Mills Limited followed it, which closed lower by Rs45.65 to Rs435.87 per share.

Brokerage Arif Habib Ltd said the KSE-100 Index experienced its sharpest weekly decline in nearly a year, falling 4.2 per cent Week-on-Week (WoW). However, Friday’s session brought some relief as the index rebounded, gaining 3.05 per cent Day-on-Day (DoD).

The week saw a volatile trading pattern, with the KSE-100 initially breaking the previous week’s high to attract fresh long positions before retreating to take out the prior week’s low. Analysts observed that a counter-trend rally flagged earlier is now underway, with the potential to extend for one to two weeks.

Despite this week’s decline, the market’s recovery on Friday indicates renewed optimism and suggests that investors are finding value at current levels. WorldCall Telecom remained the volume leader with 99.942 million shares, which closed higher by 8 paisas to Rs1.6 per share. Pace (Pak) Ltd, with 43.280 million shares, followed it, which closed higher by 96 paisas to Rs7.19 per share.

Other significant turnover stocks included K-Electric Ltd., Sui South Gas, Cnergyico PK, B.O. Punjab, Pak Elektron, Symmetry Group Ltd, Hub Power Co, and Fauji Foods Ltd. In the futures market, 303 companies recorded trading, 230 of which increased, 72 decreased, and one remained unchanged.