KSE-100 closes above record 64,700 points after 10thstraight weekly gain on economic recovery

By Our Correspondent
December 08, 2023

Stock closed at anothet all-time high on Thursday, gaining 800 points or 1.25 percent, as investors cheered the improving economic conditions and the prospects of more inflows from international lenders.

Pakistan Stock Exchange (PSX)’s benchmark KSE-100 index swung in a wide range of 1,105 points, touching an intraday high of 64,958.10 and a low of 63,853.05, before settling at 64,718 points.

Brokers monitor an index board showing the latest share prices at the PSX in Karachi. — AFP/File

The index recorded its tenth consecutive weekly gain, the longest winning streak in over six years, boosted by strong earnings growth, attractive valuations and steady economic recovery.

Buying spree in the early trade pushed up the index almost close to 65,000 points mark, however selling pressure dragged the index down to a low of 63,853.05 before buyers pushed it back toward intraday highs.

Analysts said the market is on a roll, as the economic indicators are showing positive signs and the investors are expecting more support from the IMF and other institutions

“Equities maintained their upward momentum, securing a 6th consecutive daily gain. The index exhibited volatility, fluctuating between a low of 63,853 and a high of 64,958 points," said analyst Naveed Nadeem at Topline Securities.

He said that the initial half of the session witnessed substantial buying activity, propelling the index close to the 65,000 mark. "However, a temporary decline occurred due to profit-taking, reaching a low of 63,853. Buyers re-entered the market, pushing the index back towards intraday highs, ultimately concluding the day at 64,718 represented an increase of 1.25 percent."

During the trading hours, stocks in the E&P, OMC, and banking sectors, including BAHL, MARI, MEBL, PSO, and BAFL made positive contributions, collectively adding 483 points. On the flip side, some stocks such as HUBC, LUCK, and SYS witnessed profit-taking activities, resulting in a combined loss of 97 points.

The day witnessed robust trading activity, with a total of 1.3 billion shares exchanged on the stock exchange, amounting to a total value of Rs37 billion. KEL topped the volumes chart with the trading of over 246 million shares. During the session, of the 100 index companies 57 closed up, 38 closed down, 1 was unchanged, while 4 remained untraded.

“Stocks closed new all time high amid record trades on strong earnings outlook," said analyst Ahsan Mehanti at Arif Habib Corp.

He said that high banking spreads, reports of China firm interest to buy 30pc of PSO stakes in PRL for expansion of refinery capacity, ADB approval of $659m project fundings and strong rupee played catalytic role in new record close at PSX.

KSE-100 index was supported by commercial banks with 538.98, oil & gas marketing companies with 83.35, fertilizer with 60.86, oil & gas exploration companies with 56.87, and leather & tanneries with 29.96 points. Companies adding points to the index were BAHL with 115.25, MARI with 102.95, MEBL with 99.83, PSO with 90.28, and BAFL with 74.48 points.