KARACHI: Continuing its upward momentum, stocks surged by 1,048 points on Friday to close at another all-time high of above 89,000 amid financial earnings and expectations for a bigger policy rate cut.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index surged by 1,047.98 points or 1.18 per cent to 89,993.97 points against 88,945.99 points recorded in the last session. The highest index of the day remained at 90,593.61 points while the lowest level was recorded at 89,373.82 points.
In his post on a social media platform, LinkedIn, CEO of Topline Securities Sohail Mohammed said that the PSX has achieved one of its most impressive performances in recent history, soaring from 38,000 to 90,000 points -- a remarkable 137 per cent gain in less than two years. This strong recovery marks a shift from previous fears of default to visible signs of stability, allowing bold and patient investors to recoup their losses from prior years.
Sohail added that despite the rapid rise, the market’s average price-to-earnings (PE) ratio remains between 4 and 5, significantly lower than the historical average of 7 to 8, indicating potential for further growth.
“Such a rapid and significant comeback was last witnessed at the PSX in 2010, in the aftermath of the global financial crisis, when the market more than doubled within two years. Likewise, after 9/11 in 2002, Pakistan equities demonstrated similarly extraordinary gains,” he explained.
Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks’ all-time high close was led by selected blue chip scrips in the oil, banking and fertilizer sectors on strong financial results and an expected major cut in the SBP key policy rate next week.”
He said that the finance minister’s affirmation for privatisation of SOEs, rationalising PSDP, the $1 billion sought from the IMF climate fund, and falling lending rates played a catalyst role in the bullish activity in the PSX.
The KSE-30 index increased by 352.53 points or 1.26 per cent to 28,395.15 points against 28,042.62 points.
Traded shares decreased by 62 million shares to 695.544 million shares from 757.648 million shares. The trading value rose to Rs37.873 billion from Rs36.047 billion. Market capital expanded to Rs11.689 trillion against Rs11.592 trillion. Of the 457 companies active in the session, 181 closed in green, 222 in red and 54 remained unchanged. Nabeel Haroon, analyst at Topline Securities said that continuing its momentum, the KSE-100 index extended its gain by 1.18 per cent to close at 89,994, just shy of the 90,000 level. “Good corporate result announcements also provided stimulus to the market -- where PSO (highest traded value wise scrip -- Rs5.09 billion) from the OMC sector announced its 3Q2024 result, which was better than street estimate.”
Other interesting result announcements for the September quarter that came in today were as following:
FCCL in the cement sector posted 1QFY25 EPS of Rs1.32 (up by 23 per cent YoY). Following result announcements, the rally was observed in the sector led by ACPL (up by 10 per cent), KOHC (up by 10 per cent), GLWC (up by 9.75 per cent), FCCL (up by 8.0 per cent) and CHCC (up by 6.9 per cent).
OGDC posted 1QFY25 EPS at Rs9.54 (down 16 per cent while up 8.0 per cent QoQ), result was accompanied with an interim payout of Rs3/share. Since the payout was lower than street estimate it closed on a flat note (up by 0.16 per cent)
The highest increase was recorded in Rafhan Maize Products Company Limited shares, which rose by Rs371.44 to Rs7,400 per share, followed by Unilever Pakistan Foods Limited, which increased by Rs229.44 to Rs18,685 per share. A significant decline was noted in Sapphire Textile Mills Limited, which fell by Rs73.47 to Rs1,101.53 per share; Nestle Pakistan Limited followed it, which closed lower by Rs59.84 to Rs6,565.12 per share. Analyst Mohammed Waqar Iqbal at JS Research said, “We expect this upward trend to continue, supported by positive political developments and macroeconomic news.”
Fauji Foods Ltd. remained the volume leader with 57.561 million shares which closed higher by 78 paisas to Rs10.01 per share. K-Electric Ltd followed it with 41.399 million shares, which closed lower by 24 paisas to Rs4.58 per share.
Other significant turnover stocks included Sui South Gas, Fauji Cement XD, WorldCall Telecom, PSO XD, Oil & Gas Dev XD, PTCL, Maple Leaf and Pak Petroleum XD. In the futures market, 323 companies recorded trading, of which 118 increased, 202 decreased and 3 remained unchanged.