KARACHI: Stocks witnessed some recovery on Friday, and the benchmark KSE-100 index closed 928 points higher amid a strong earnings outlook.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index increased by 927.86 points or 0.84 per cent to 111,351.18 points against 110,423.32 points recorded in the last session. The highest index of the day remained at 112,043.77 points, while the lowest level was recorded at 110,246.93 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks showed recovery near year-end close on strong earnings outlook.” He said the strong rupee, reports of surging exports, higher global crude oil prices and falling government bond yields amid thin inflation played a catalyst role in the bullish close at the PSX. The KSE-30 index increased by 261.01 points or 0.75 per cent to 35,039.05 points against 34,778.04 points.
Traded shares increased by 187 million shares to 815.92 million shares from 628.026 million shares. The trading value dropped to Rs32.917 billion from Rs33.582 billion. Market capital expanded to Rs14.126 trillion against Rs14.014 trillion. Of the 443 companies active in the session, 223 closed in green, 176 in red and 44 remained unchanged.
Analyst Nabeel Haroon at Topline Securities said that recovery was observed as the KSE 100 index largely traded in the positive zone to close at the 111,351 level (up by 0.84 per cent). Traded value-wise TRG (Rs2.92 billion), MARI (Rs2 billion), PSO (Rs1.77 billion), OGDC (Rs1.28 billion) and MEBL (Rs835 million) dominated the trading activity. Top contribution to the index came from MARI, MEBL, PSO, BAFL and TRG, as they cumulatively contributed 416 points to the index.
TRG again remained in the limelight, as disclosure with respect to Greentree Holdings (substantial shareholder) intention to buy up to 35.145 per cent stake in TRG Pakistan (TRG) garnered investor interest.
The highest increase was recorded in Hoechst Pakistan Limited, which rose by Rs147.06 to Rs2,847.06 per share, followed by Ismail Industries Limited, which increased by Rs79.71 to Rs1,964.71 per share. A significant decline was noted in Rafhan Maize Products Company Limited, which fell by Rs113.46 to Rs8,888.44 per share; Nestle Pakistan Limited followed it, which closed lower by Rs53.11 to Rs7,377.70 per share.
Brokerage Arif Habib Ltd stated the KSE-100 Index staged a recovery on Friday, closing the week with a gain of 1.4 per cent week-on-week (WoW) after facing pressure from a two-day sell-off earlier in the week.
In a key development, the National Bank of Pakistan (NBP, +1.43 per cent) announced that the US Federal Reserve has terminated its enforcement action against the bank, improving investor sentiment.
Despite the positive close, analysts noted that the KSE-100 remains range-bound and continues to lack clear directional momentum. Investors are expected to monitor upcoming economic indicators and global market cues for further guidance.
Fauji Foods Ltd remained the volume leader with 104.428 million shares, which closed higher by 69 to Rs17.08 per share. WorldCall Telecom, with 74.132 million shares, followed it, which closed lower by one paisa to Rs1.71 per share.
Other significant turnover stocks included Cnergyico PK, TRG Pak Ltd, Hascol Petrol, Ghani Chemical, Sui South Gas, Silk Bank Ltd, K-Electric Ltd, and Ghani Glo Hol. In the futures market, 303 companies recorded trading, 170 of which increased, 132 decreased, and one remained unchanged.