PSX bulls defy gravity, near 59,000 points on economic strength

KARACHI: The Pakistan Stock Exchange (PSX) continued its record-breaking rally on Thursday, as the benchmark index gained more than 1 percent, making new highs near to 59,000 point level on robust economic indicators and bet on a lower interest rate, dealers said.

The Asia's best preforming KSE 100-share Index rose 1.2 percent or 701.08 points to close at 58,899.84 points, surpassing its previous peak of 58,198.76 points on Wednesday. The highest index of the day remained at 58,920.41 points while the lowest level was recorded at 58,246.21 points. The KSE-30 index also gained by 187.93 points or 0.97 percent to close at 19,562.82 points.

Traded shares increased by 73 million shares to 669.250 million shares from 596.217 million shares. The trading value increased to Rs25.232 billion from Rs22.054 billion. Market capital rose to Rs8.530 trillion against Rs8.444 trillion. Out of 393 companies active in the session, 227 closed in green, 140 in red and 26 remained unchanged.

Analyst Ahsan Mehanti at Arif Habib Corp said the market is on a roll, driven by robust economic outlook, shrinking current account deficit, and government efforts to resolve power sector circular debt.

"The surging exports, ongoing rupee recovery, projections on falling interest rates and improving foreign exchange reserves following the International Monetary Fund’s (IMF) disbursement of the next tranche played a catalytic role in the record close."

Analyst Ali Najib at Topline Securities said the equities witnessed an unstoppable bull run where the benchmark index further gained over one percent. “The day’s business commenced on a buoyant note and momentum remained strong throughout the day. Market participants opted to switch their positions by booking profits in energy sector stocks on the backdrop of a decline in international oil prices due to above expected US inventory level reported yesterday,” he added.

Najib said technology and banking sector stocks witnessed some cherry-picking by investors as they received rejuvenated buying interest. Analyst Sana Tawfik, an analyst at Arif Habib Limited (AHL) said the market is expecting a decline in the interest rate in the upcoming Monetary Policy Committee (MPC) meeting. “The decline in interest rate would shift liquidity from fixed income towards equities,” she said.

Stocks closed higher Thursday making new highs near to 59k point level on robust economic indicators, traders said. The highest increase was recorded in Hoechst Pak Ltd, which rose by Rs76.25 to Rs1,092.92 per share, followed by Ismail Ind, which increased by Rs65 to Rs931.72 per share. A significant decline was noted in Nestle Pakistan, which fell by Rs50 to Rs8,500 per share, followed by Pak Engineering, which decreased by Rs46.80 to Rs577.20 per share.

Brokerage Arif Habib Ltd said the market demonstrated robust performance yet again as the benchmark index moved tantalisingly close to the 59,000 points milestone. "In a notable trend, technology-related stocks outperformed, with both NESTOL and AVN gaining the maximum limit of +7.5 percent. This surge in tech names underscores the sector's prominence and its potential to remain in the spotlight."

As the index inches closer to the 60,000 mark, investors are keenly watching the momentum, particularly in technology stocks, anticipating further developments in the coming sessions, the brokerage said

WorldCall Telecom remained the volume leader with 40.217 million shares which closed lower by 2 paisas to Rs1.62 per share. It was followed by Telecard Limited with 32.418 million shares, which closed higher by 52 paisas to Rs32.418 per share.

Other significant turnover stocks included Pak Refinery, Air Link Commun, Hum Network, Cnergyico PK, K-Electric Ltd., Fauji Fert Bin, Pak Elektron and TRG Pak Ltd.

Shares’ turnover in the future contracts increased to 319.002 million shares from 257.409 million shares.