Stocks closed higher on Tuesday, extending their winning streak to seven sessions, as refineries rallied ahead of their earnings and the rupee strengthened against the dollar, traders said.
The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained 418.48 points or 0.88 percent to close at 48,140.28 points. The highest index of the day remained at 48,166.36 points while the lowest level was recorded at 47,708.11 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said bullish activity continued led by selected scrips across the board in the earning season rally at the PSX on strong rupee and govt deliberations over privatisation of sick SOEs.
“Upbeat data on $2.206 billion remittances in Sept 23 and speculations over the likely release of the $700 million IMF tranche next month played a catalytic role in bullish activity."
The KSE-30 index also increased by 146.06 points or 0.89 percent to close at 16,649.58 points.
Traded shares rose by 127 million shares to 350.067 million shares from 233.661 million shares. The trading value increased to Rs10.762 billion from Rs7.076 billion. Market capital expanded to Rs7.089 trillion against Rs7.036 trillion. Out of 347 companies active in the session, 227 closed in green, 96 in red and 24 remained unchanged.
Analyst Naveed Nadeem at Topline Securities said the equities market sustained a bullish trend for the seventh consecutive day.
The positive momentum was driven by the banking, fertilizer, and refinery sectors including MEBL, FFC, ATRL, UBL, and BAHL, contributing a total of 153 points. Conversely, NESTLE, MTL, and COLG collectively incurred a loss of 30 points.
The highest increase was recorded in Unilever Foods, which rose by Rs550 to Rs21,250 per share, followed by Sapphire Fiber, which increased by Rs69.99 to Rs1,144.99 per share. A significant decline was noted in Nestle Pakistan, which fell by Rs100 to Rs7,000 per share, followed by Thal Ind. Corp., which decreased by Rs10.90 to Rs227.09 per share.
Brokerage Arif Habib Ltd said teh market continued its impressive rally, surpassing the weekly objective of 48,000 points. "This milestone has been met with enthusiasm in the market as the index witnessed significant gains."
Notably, refineries were among the key performers. Attock Refinery Limited (ATRL) led the way with an impressive gain of 7.5 percent, closely followed by National Refinery Limited (NRL), which recorded a substantial increase of 6.56 percent. Moreover, MCB Bank Limited (MCB) posted a gain of 2.92 percent, contributing to the overall positive sentiment in the market.
"With the successful attainment of the 48,000-point mark, investors are now looking ahead with optimism," the brokerage said. "The benchmark index maintains strong momentum, and market participants are eagerly anticipating further gains. As the index continues its upward trajectory, it is crucial to monitor the support level, which currently stands at 47,900 points. Any consolidation in this range may serve as a healthy development for the market."
As the PSX approaches the August highs around the 49,000-point mark, analysts are emphasizing caution. "While the momentum remains robust, entering the 49,000 to 50,000-point range may introduce increased volatility and potential challenges."
K-Electric Ltd. remained the volume leader with 33.899 million shares which closed higher by 16 paisas to Rs2.46 per share. It was followed by Pak Refinery with 26.344 million shares, which closed higher by 67 paisas to Rs16.43 per share.
Other significant turnover stocks included WorldCall Telecom, Pak Elektron, Dewan Motors, Maple Leaf, Cnergyico PK, Ghani Glo Hol, TPL Properties and Telecard Limited.
Shares’ turnover in the future contracts increased to 92.744 million shares from 57.161 million shares.