KSE-100 hits stratospheric 70,000 on IMF hopes, Saudi billions

KARACHI: Pakistan stocks continued the upward momentum and crossed the 70,000 mark for the first time to another all-time high on upbeat data on remittances and the announcement of Saudi Arabia’s economic support, traders said.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index surged by 694.73 points or 1.00 percent to 70,314.72 points against 69,619.99 points recorded in the last session. The highest index of the day remained at 70,677.30 points while the lowest level was recorded at 69,857.15 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “PSX reached fresh record amid upbeat data on $2.95 billion remittances surging by 16.4 percent YoY in Mar’24 and affirmation on $5bn investment package from Saudi Arabia for economic support.” He said that speculation ahead of new IMF loan programme talks due next week and easing SBP policy rates amid falling inflation played a catalyst in the record close.

The KSE-30 index increased by 221.49 points or 0.97 percent to 23,132.29 points against 22,910.80 points. Traded shares increased by 54 million shares to 389.396 million shares from 335.825 million shares. The trading value rose to Rs17.273 billion from Rs15.315 billion. Market capital expanded to Rs9.760 trillion against Rs9.682 trillion. Of 353 companies active in the session, 181 closed in green, 157 in red and 15 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said the positivity can be attributed to the commitment reflected by Saudi Arabia to expedite the first wave of an investment package worth $5bn. The agreement includes increasing Saudi deposits in the Central Bank of Pakistan from $3 billion to $5 billion and injecting investment in oil refineries (Pakistan oil and gas companies joint venture with Saudi Aramco) and copper mines (Reko Diq).

Major positive contributions to the index came from FFC, MEBL, HUBC, MARI and EFERT as they cumulatively contributed 471 points to the index. FFC gained to close at its upper limit on channel checks that the company has increased urea prices by Rs633/bag to Rs4,400/bag. The highest increase was recorded in Rafhan Maize Products Company Limited shares, which rose by Rs100 to Rs8,350 per share, followed by Mari Petroleum Company Limited, which increased by Rs55.85 to Rs2,621.71 per share. A significant decline was noted in Sapphire Textile Mills Limited, which fell by Rs60 to Rs1,350 per share, followed by Bata Pakistan Limited, which closed lower by Rs50 to Rs1,700 per share. Brokerage Arif Habib Ltd said that the stock market saw week-over-week gains to +2.9 percent. These strong performances contributed to the achievement of the 70,000 mark, marking a significant milestone in liquidity draw, and also widened the spread from the 200-day moving average to +26 percent. As the market continues its upward trajectory, support at the 67,000 level is expected to hold decline, with potential upside targets ranging from 73,000 to 75,000. Notably, cement stocks are emerging as interesting prospects for the second quarter, having not participated in year-to-date gains but now poised to assume leadership. WorldCall Telecom remained the volume leader with 34.372 million shares which closed lower by 7 paisas to Rs1.31 per share. Pak Int. Bulk followed it with 27.819 million shares, which closed higher by 19 paisas to Rs6.17 per share. Other significant turnover stocks included P.I.A.C. (A), Fauji Foods Ltd, Agritech Limited, Fauji Cement, P.T.C.L., Fauji Fert Bin, the Searle Company and Cnergyico PK. In Future Market, 307 companies recorded trading, of which 137 increased, 162 decreased and 8 remained unchanged.