Stocks end week with jump of 498 points

By Our Correspondent
June 15, 2024
A stock broker looks at a computer during a trading session at the Pakistan Stock Exchange (PSX) in Karachi on July 31, 2023. — AFP

KARACHI: The stock market continued its bullish trend for the second consecutive day on Friday when its benchmark KSE-100 index crossed the mark of 77,000 points first time during the intra-day trading.


The market triggered a buying frenzy in the first half of the trading session when the index posted over 1000 points. However the profit taking in the second half of the trading brought down the index down.

The PSX’s benchmark index gained 498 points or 0.65 per cent to close the day at 76,706 points compared to the level of 76,208 points in the previous session. The highest level of the index remained 77,310 points whereas the lowest level of 76,103 points.

The KSE-100 share Index surged by 3,410.73 points, the highest gain in a single day, or 4.69 per cent to 76,208.16 points in the last trading session.

Market analysts attributed the bullish momentum in the market to the status quo for the tax filers of the capital market.

They also pointed out that market is upbeat about the next loan programme of the International Monetary Fund (IMF) after the federal budget was presented in line with the recommendations of the global lender.

“Stocks closed all time high in the post budget rally at PSX as investor weigh fall in government treasury bond yields, rupee recovery and status quo in tax measures for tax filers of capital markets”, said analyst Ahsan Mehanti at Arif Habib Corp.

He noted that the finance minister’s plans to launch Eurobonds of upto $1 billion and fresh bid for $4 billion foreign bank loans, projections for massive increase in SOEs dividends and SOEs privatisation proceeds in FY25 played catalyst role in record close.

Analyst Sheharyar Butt at Darson Securities said that market also reacted to the hopes that Pakistan and the IMF would be making headway towards next loan programme after the federal budget was presented in line with the IMF recommendations.

The KSE-100 Index extended its gain as the index gained to make an intraday high of 1,102 points, as no increase in tax rate on dividend and capital gain from stock market for filers against market rumors and increase in taxes on other asset classes continue to garner investor interest in the market, said analyst Nabeel Haroon at Topline Securities.

He said that some intraday profit taking was observed during the latter part of trading session, as investors preferred to book their profit before the long weekend on account of Eidul Azha holidays.

Major positive contribution to the index came from banks, as MEBL, MCB, BAFL, UBL, BAHL and HBL cumulatively contributed 642 points to the index.

Traded volume and value for the day stood at 395 million shares and Rs21.33 billion respectively. KEL was today’s volume leader with 23 million shares.

As many as 43 stocks rose while 53 fell with MEBL PA (+4.07 per cent), MCB PA (+4.49 per cent), and BAFL PA (+8.5 per cent) the biggest contributors to index gains. The largest drags were PPL PA (-2.25 per cent), SYS PA (-1.52 per cent) and ILP PA (-5.73 per cent). “Closing at all time high ahead of the long Eid Holidays is positive for additional upside prospects in the coming weeks”, Arif Habib Limited in its post trading note said.