KARACHI: The Pakistan Stocks Exchange (PSX) closed to the week on a strong note, with the benchmark KSE-100 index surging by 1,435 points, as investors took the conviction of the former Prime Minister Imran Khan positive for the market, which is likely to ease the political noise.
The KSE-100 surged by 1,435.34 points or 1.26 per cent to 115,272.08 points against 113,836.74 points recorded in the last session. The highest index of the day remained at 115,356.12 points, while the lowest level was recorded at 113,571.96 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said that the positive performance of stocks was driven by strong investor sentiment during the earnings season, boosted by optimism about political developments -- specifically, the conviction of the PTI founder and the possibility of progress in government-PTI negotiations.
He said that falling lending rates, surging SBP forex reserves amid the $2 billion UAE deposit rollover and easing political noise played a catalyst role in the surge at the PSX. The KSE-30 index increased by 549.26 points or 1.54 per cent to 36,311.37 points against 35,762.11 points.
Traded shares increased by 80 million shares to 549.584 million shares from 469.44 million shares. The trading value rose to Rs35.931 billion from Rs24.981 billion. Market capital expanded to Rs14.244 trillion against Rs14.088 trillion. Of the 461 companies active in the session, 264 closed in green, 128 in red and 69 remained unchanged.
An analyst at Topline Securities said a bullish session was observed as the KSE-100 Index largely traded in a positive zone during the trading session to close at the 115,272 level (up by 1.26 per cent). “This positivity in the market can be attributed to the 14-year imprisonment handed by the court to former Prime Minster Imran Khan on charges of accepting land illegally from a real estate tycoon,” he said. “The market took the aforementioned development positively as it will result in political stability and goes in favour of the status quo.”
Top positive contribution to the index came from UBL, HUBC, LUCK, PPL, OGDC and POL, as they cumulatively contributed 669 points to the index. Traded value-wise HUBC (Rs4.97 billion), SEARL (Rs1.49 billion), FFC (Rs1.39 billion), PSO (Rs1.36 billion), ENGROH (Rs1.21 billion), DGKC (Rs1.13 billion), PPL (Rs1.12 billion) and OGDC (Rs1.01 billion) dominated the trading activity.
The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs398 to Rs21,998 per share, followed by Hoechst Pakistan Limited, which increased by Rs86.38 to Rs2,819.76 per share. A significant decline was noted in JDW Sugar Mills Limited, which fell by Rs36.15 to Rs889.21 per share; Mehmood Textile Mills Limited followed it, which closed lower by Rs25.66 to Rs653.86 per share.
Brokerage Arif Habib Ltd said that the PSX concluded the week on a strong note, with the KSE-100 index recording a 1.8 per cent gain on a week-on-week basis during a robust Friday session.
In a major boost to Pakistan’s tech sector, the country recorded its highest-ever monthly IT exports of $348 million in December 2024, representing a 15 per cent year-on-year and 12 per cent month-on-month increase. This performance pushed the total IT exports for the first half of FY25 to $1,864 million, a 28 per cent increase from $1,456 million during the same period last year. IT exports contributed 44 per cent of total services exports in December 2024, up from 41 per cent in the corresponding period last year. Market sentiment remains optimistic for the upcoming week, with expectations of the KSE-100 breaching the upper limit of its recent 112,000-115,500 range and potentially hitting new highs. Investors are closely watching key developments in both the corporate and macroeconomic fronts.
WorldCall Telecom remained the volume leader with 101.934 million shares, which closed higher by one paisa to Rs1.87 per share. Hub Power Co., with 36.888 million shares, followed it, which closed higher by Rs5.7 to Rs137.4 per share.
Other significant turnover stocks included Hascol Petrol, Dewan Motors, Citi Pharma Ltd, Fauji Foods Ltd, Cnergyico PK, K-Electric Ltd., Pak Refinery and The Searle Company. In the futures market, 298 companies recorded trading, 221 of which increased, 71 decreased and 6 remained unchanged.