KSE-100 closes above 50,000 after six years with massive 934-point gain

KARACHI: Stocks closed above the 50,000 mark for the first time in six years on Thursday, boosted by a strong rupee recovery, falling treasury bond yields and a $1.5 billion accord with China for investments in the petroleum sector, traders said.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index gained 933.67 points or 1.89 percent to close at 50,365.15 points. The highest index of the day remained at 50,399.92 points while the lowest level was recorded at 49,436.92 points.

Analyst Ahsan Mehanti at Arif Habib Corp said bullish activity was witnessed as investors are upbeat about the macroeconomic situation and the prospects of foreign investments. “Oil stocks outperformed on strong earnings outlook and surging global crude oil prices. Easing political noise, speculations ahead of the release of the next IMF tranche under SBA played a catalytic role in a bullish close.”

The KSE-30 index also increased by 375.82 points or 2.22 percent to close at 17,286.05 points against 16,910.24 points. Traded shares rose by 95 million shares to 427.476 million from 332.606 million. The trading value increased to Rs14.593 billion from Rs8.824 billion. The market capital rose to Rs7.365 trillion against Rs7.242 trillion. Out of 361 companies active in the session, 255 closed in green, 94 in red and 12 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said the equities enjoyed a robust upswing as the benchmark index concluded the trading session above the 50,000 level for the first time since October 2017. “Notably, the index was largely propelled by the prevailing positive sentiment in response to yesterday’s T-Bills auction,” Nadeem said. “The auction provided a strong indication that the market believes interest rates have hit their peak. Consequently, it suggests that the market anticipates a forthcoming period characterized by stability or a potential decrease in interest rates.”

Fertilizer and E&P, including PPL, ENGRO, HUBC, OGDC and PSO, made a positive contribution by adding 440 points. However, RMPL, TRG, and IBFL collectively lost 23 points. The highest increase was recorded in Unilever Foods, which rose by Rs750 to Rs22,000 per share, followed by Nestle Pakistan, which increased by Rs90 to Rs7,390 per share. A significant decline was noted in Rafhan Maize, which fell by Rs390 to Rs8,000 per share, followed by Al-Abbas Sugar, which decreased by Rs16 to Rs500 per share.

Brokerage Arif Habib Ltd said the bullish momentum was primarily led by blue-chip companies. “Another key performer for the day was PSMC, which surged by 7.5 percent. This increase followed the release of the company’s earnings report and the Board of Directors’ approval for the company’s delisting from the PSX.”

The brokerage said the market appears to be focused on the crucial support level of 49,300 points. “Beyond this level, the next anticipated upside catalyst is the 53,000-point mark, which corresponds to the all-time highs achieved in 2017.”

K-Electric Ltd. remained the volume leader with 83.163 million shares which closed higher by 29 paisas to Rs3.37 per share. It was followed by Pak Refinery with 37.666 million shares, which closed higher by 60 paisas to Rs17.47 per share. Other significant turnover stocks included WorldCall Telecom, Pak Petroleum XD, and Oil & Gas Dev. XD, Sui North Gas, Sui South Gas, Maple Leaf, Cnergyico PK and Pak Elektron. Shares’ turnover in the future contracts increased to 92.117 million shares from 91.336 million shares.