Stocks hit record close near 73,000 on late buying spree

Stocks surged to a new all-time high on Friday, closing near 73,000 points as late-session buying fueled a 1 percent gain, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index increased by 771.35 points or 1.07 percent to close at 72,742.75 points. The highest index of the day remained at 72,862.41 points while the lowest level was recorded at 71,764.18 points. The KSE-30 index increased by 284.82 points or 1.20 percent to 24,033.87 points.

Analyst Muhammad Rizwan at Chase Securities said despite the choppy session experienced the day before, "the market rebounded with a strong start and achieved a new all-time high".

"This impressive performance was driven by significant contributions from various sectors: Fertilizer added 386 points, Commercial banks contributed 174 points, the Power sector provided 112 points, and Cement added 93 points, collectively reversing the previous negative close and boosting market sentiment."

Rizwan said investor interest shifted towards the auto assembly sector, as companies such as GAL, GHNI, HCAR, and SAZGAR hit their upper caps, "likely in anticipation of an upcoming cut in the Monetary Policy Committee (MPC) meeting".

Analyst Ahsan Mehanti at Arif Habib Corp said stocks closed all-time high on the strong earnings outlook and reports of RDA reaching $7.66 billion. "Foreign inflows, stable rupee, speculation ahead of the SBP policy rate decision on April 29, and firm IMF new loan talks played a catalytic role in the record close."

Traded shares decreased by 257 million shares to 541.144 million shares from 798.527 million shares. The trading value dropped to Rs22.589 billion from Rs27.542 billion. Market capital expanded to Rs10.017 trillion against Rs9.952 trillion. Of 377 companies active in the session, 177 closed in green, 175 in red and 25 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said that a positive session was observed, where the index gained 771 points to close at its ever-high level of 72,743 level.Major positive contributions to the index came from EFERT, BAHL, HUBC, FFC and ENGRO, as they cumulatively contributed 577 points to the index.

The highest increase was recorded in Nestle Pakistan Limited shares, which rose by Rs131.74 to Rs7,822.61 per share, followed by Sapphire Fibres Limited, which increased by Rs104.12 to Rs1,492.45 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs101.08 to Rs20,153.92 per share, followed by Philip Morris (Pakistan) Limited, which closed lower by Rs38.36 to Rs630.20 per share.

Brokerage Arif Habib Ltd said the market continued its upward trajectory, marking its sixth consecutive weekly gain with a significant 2.54 percent increase in the week.

"Investor focus has now shifted to the State Bank of Pakistan's Monetary Policy Committee (SBP MPC) meeting scheduled for Monday. Market participants are eagerly awaiting the decision on interest rates, with opinions divided on whether the SBP will initiate an easing cycle," the brokerage said.

"The recent bullish sentiment in the market suggests that investors are anticipating a rate cut. However, in the event of no rate cut, analysts believe it would present a favourable opportunity to invest in cyclical stocks."

Despite uncertainties surrounding the monetary policy decision, the overall outlook for the market remains positive. Near-term supports have held firm, indicating resilience in the face of potential volatility.

Askari Bank remained the volume leader with 39.174 million shares which closed higher by 31 paisas to Rs25.16 per share. K-Electric Ltd. followed it with 31.235 million shares, which closed lower by 6 paisas to Rs4.58 per share.Other significant turnover stocks included WorldCall Telecom, Cnergyico PK, Unity Foods Ltd, Fauji Fert Bin, Pak Int. Bulk, Dewan Motors, Fauji Foods Ltd and B.O. Punjab.