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Sunday May 19, 2024

Stocks leap to record peak, top 69,000 on Reko Diq deal hopes

The KSE-30 index increased by 472.35 points or 2.11 percent to 22,910.80 points against 22,438.45 points

By Our Correspondent
April 09, 2024
Men use their cell phones as they stand in front of electronic board displaying share market prices during a trading session in the halls of Pakistan Stock Exchange (PSX) in Karachi. — Reuters/File
Men use their cell phones as they stand in front of electronic board displaying share market prices during a trading session in the halls of Pakistan Stock Exchange (PSX) in Karachi. — Reuters/File

KARACHI: Pakistan stocks continued the upward trend and crossed the 69k mark for the first time to another all-time high on hopes for the Saudi Reko Diq deal in the coming days, traders said.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index surged by 1,203.20 points or 1.76 percent to 69,619.99 points against 68,416.78 points recorded in the last session. The highest index of the day remained at 69,720.03 points while the lowest level was recorded at 68,710.50 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed at an all-time high on led by blue chip oil, banking and pharma scrips as investors weigh PM visit to Saudi Arabia and deliberations over $1bn Saudi Reko Diq deal next month, along with OGDC and PPL share offerings.”

A surge in Brent crude prices to over $90, higher banking spreads and a high court case vacated against pharmaceuticals over the deregulation of non-essential medicines played a catalyst role in the bullish close at PSX, he said.

The KSE-30 index increased by 472.35 points or 2.11 percent to 22,910.80 points against 22,438.45 points.

Traded shares decreased by 53 million shares to 335.825 million shares from 388.751 million shares. The trading value dropped to Rs15.315 billion from Rs17.882 billion. Market capital expanded to Rs9.682 trillion against Rs9.544 trillion. Of 345 companies active in the session, 203 closed in green, 123 in red and 19 remained unchanged.

Ali Najib, an analyst at Topline Securities, said equities kicked off the shorter week (a week of 2 trading sessions before the Eid holidays) with a bang.

The KSE100 index commenced the day on a positive note, remained green throughout the day and ultimately closed the day at 69,620 (+1,203 points; up 1.76 percent).

Investors opted to choose further strengthening in their equity position by doing value hunting across the board, especially in the blue-chip stocks, he said. Consequently, fertilizer, power, banks and tech contributed positively as FFC, HUBC, MCB, SYS and MEBL added 486 points, collectively. On the flip side, DAWH, EFERT and ENGRO lost 85 points as they saw some profit-taking.

The highest increase was recorded in Rafhan Maize Products Company Limited shares, which rose by Rs150 to Rs8,350 per share, followed by Mari Petroleum Company Limited, which increased by Rs48.88 to Rs2,565.86 per share. A significant decline was noted in Hallmark Company Limited, which fell by Rs49.93 to Rs615.80 per share, followed by Al-Abbas Sugar Mills Limited, which closed lower by Rs35 to Rs550 per share.

Brokerage Arif Habib Ltd stated that the stock market demonstrated significant strength setting a positive tone ahead of the upcoming Eid holidays. Despite the shortened two-day trading week, investor participation was robust across the board, driving the market towards the crucial 70,000 level.

One of the standout sectors during the session was the pharmaceutical industry, with stocks like SEARL, AGP, and ABOT witnessing significant gains. This surge in pharmaceutical stocks follows a favourable ruling by the Lahore High Court, which nullified the stay order against the deregulation of Maximum Retail Prices. SEARL, in particular, saw the highest value traded during the session, indicating strong investor interest in the sector.

The market trend remains highly positive, with the 70,000 level now within touching distance. Investors are optimistic about the continued momentum and are closely monitoring developments as the market progresses towards new milestones.

P.T.C.L. remained the volume leader with 33.757 million shares which closed higher by 83 paisas to Rs17.02 per share. The Searle Company followed it with 21.100 million shares, which closed higher by Rs4.10 to Rs61.86 per share.

Other significant turnover stocks included WorldCall Telecom, K-Electric Ltd., P.I.A.C. (A), Cnergyico PK, Hub Power Co., Air Link Commun, Pak Elektron and National Bank XD.

In Future Market, 307 companies recorded trading, of which 233 increased, 73 decreased and one remained unchanged.