KARACHI: Stocks started the week on a strong note as the benchmark KSE-100 index surged 3,908 points on Monday amid the finance minister’s statement that hinted at a possible decrease in the interest rate to the single digit, boosting investor confidence.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged by 3,907.82 points or 3.51 per cent to 115,259 points against 111,351.18 points recorded in the last session. The highest index of the day remained at 115,422.34 points, while the lowest level was recorded at 111,916.71 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks showed a record surge ahead of year-end close led by scrips across the board as investors weigh the finance minister’s hints for single digit interest rates, rationalisation of Govt spending and economic reforms.”
He said that a strong rupee, surging exports and falling lending rates played a catalyst role in the bullish close at the PSX.The KSE-30 index increased by 1,260.86 points or 3.6 per cent to 36,299.91 points against 35,039.05 points. Traded shares increased by 244 million shares to 1,059.02 million shares from 815.920 million shares. The trading value rose to Rs40.889 billion from Rs32.917 billion. Market capital expanded to Rs14.558 trillion against Rs14.126 trillion. Of the 465 companies active in the session, 333 closed in green, 84 in red and 48 remained unchanged.
Analyst Maaz Mulla at Topline Securities said the Pakistan Stock Exchange (PSX) staged a powerful bullish run, with the KSE-100 index soaring by 3,907 points (3.51 per cent) to close at 115,258. The index reached an intraday high of 4,071 points, marking a day of impressive gains.
He said that the upward momentum was fuelled by optimism surrounding anticipated increases in equity fund allocations by local institutions ahead of the new year. Adding further impetus was a statement from the finance minister over the weekend, suggesting a potential decline in interest rates to single-digit levels in the future.
While the ultimate decisions lie with the Monetary Policy Committee, the minister’s remarks boosted market confidence and optimism about the economic outlook.Major contributors to the index’s rise included HBL, DAWH, MCB, Engro and Mari, collectively adding 1,265 points to the day’s performance.
The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs351.23 to Rs21,133.87 per share, followed by Rafhan Maize Products Company Limited, which increased by Rs92.12 to Rs8,980.56 per share. A significant decline was noted in Khyber Textile Mills Limited, which fell by Rs60.39 to Rs578.73 per share; PIA Holding Company Limited B followed it, which closed lower by Rs58.78 to Rs832.28 per share.
Brokerage Arif Habib Ltd said the KSE-100 index posted a robust gain of 3.51 per cent on Monday, closing near the upper end of its current range as investor sentiment turned positive.Market analysts remain optimistic as the revised tax policy and positive economic data continue to drive investor confidence, pushing the index closer to breaking out of its range-bound movement.
Cnergyico PK remained the volume leader with 125.613 million shares, which closed higher by 92 paisas to Rs7.44 per share. WorldCall Telecom, with 111.551 million shares, followed it, which closed higher by 12 paisas to Rs1.83 per share.
Other significant turnover stocks included BO Punjab, Silk Bank Ltd, K-Electric Ltd, Pak Elektron, Sui South Gas, Fauji Foods Ltd, Telecard Limited and Pace (Pak) Ltd. In the futures market, 298 companies recorded trading, 281 of which increased and 17 decreased.