Stocks defy gravity; KSE-100 skyrockets to 72,000 mark

KARACHI: Stocks surged to a new record high on Wednesday, with the benchmark KSE 100-share Index closing above the 72,000 mark for the first time in history, as investors weighed positive economic indicators and corporate earnings.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index increased by 692.49 points or 0.97 percent to close at 72,051.89 points. The highest index of the day remained at 72,414.33 points while the lowest level was recorded at 71,467.02 points. The KSE-30 index increased by 240.96 points or 1.02 percent to 23,807.82 points.

Analyst Maaz Mulla at Topline Securities said the surge was propelled by positive shifts in market sentiment in the backdrop off anticipation in economic metrics such as foreign exchange reserves and inflation trends, has ignited expectations of forthcoming monetary easing.

Traded shares decreased by 56 million shares to 599.401 million shares from 655.935 million shares. The trading value dropped to Rs24.459 billion from Rs24.485 billion. Market capital expanded to Rs9.969 trillion against Rs9.904 trillion. Of 382 companies active in the session, 218 closed in green, 139 in red and 25 remained unchanged.

“Stocks closed bullish on strong economic outlook,” said analyst Ahsan Mehanti at Arif Habib Corp."Finance minister's affirmation on forex reserves reaching $9billion-$10 billion by June, speculation ahead of SBP policy announcement on April 29, strong earnings in the banking sector and IMF new loan talks for a long and larger program played a positive role in a record close."

Mulla said various sectors, including cement, banking, power and automobiles, contributed significantly to the positive activity, with notable contributions from companies like LUCK, HUBC, HBL, MTL, and SYS, collectively adding 369 points. Conversely, profit-taking was observed in companies like MEBL, PAKT, and PSEL, resulting in a cumulative loss of 85 points.

The highest increase was recorded in Unilever Pakistan Foods Limited shares, which rose by Rs153.49 to Rs20,627.99 per share, followed by Hallmark Company Limited, which increased by Rs69.64 to Rs998.21 per share. A significant decline was noted in Pakistan Tobacco Company Limited, which fell by Rs73.04 to Rs965.96 per share, followed by Sapphire Textile Mills Limited, which closed lower by Rs59.63 to Rs1,265.37 per share.

Brokerage Arif Habib Ltd said the market continued its upward trajectory, with the benchmark index breaching the 72,000 handle, marking another near one percent day-on-day gain.

Tech sector stocks outperformed, with notable gains seen in AIRLINK (+7.43 percent), NETSOL (+6.29 percent), OCTOPUS (+7.5 percent), and AVN (+7.5 percent).

Market analysts anticipate that declines into the 71,400-71,800 range should be met with strong demand, paving the way for further upward moves towards the 72,500 level.

"Investors remain optimistic about the market's performance, buoyed by positive sentiment and strong corporate earnings, despite ongoing volatility in the global economic landscape," the brokerage said.

Pak Int. Bulk remained the volume leader with 54.513 million shares which closed higher by 38 paisas to Rs7.01 per share. K-Electric Ltd. followed it with 40.123 million shares, which closed higher by 9 paisas to Rs4.14 per share.

Other significant turnover stocks included Air Link Commun, WorldCall Telecom, Telecard Limited, Unity Foods Ltd, Pak Refinery, Fauji Cement, The Searle Company and Fauji Foods Ltd.

In Future Market, 317 companies recorded trading, of which 202 increased, 106 decreased and 9 remained unchanged.