Stocks edge higher on World Bank’s reform pledge

Stocks recovered from a decline in the previous session, as investors welcomed the World Bank's pledge to support the country's structural reforms, dealers said on Thursday.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained by 56.24 points or 0.08 percent to close at 72,658.05 points. The KSE-30 index decreased by 155.85 points or 0.66 percent to 23,382.68 points against 23,538.53 points.

“Stocks showed recovery as investors weigh WB affirmation to collaborate in structural reforms, sustainable development and rupee stability,” said analyst Ahsan Mehanti at Arif Habib Corp.

He said that the government deliberations over the privatisation of ailing SOEs, speculations ahead of Pakistan-IMF new loan talks this month and the likely visit of the Saudi crown prince to seal investment deals under SIFC played a catalytic role in a positive close.

Traded shares decreased by 296 million shares to 674.981 million shares from 970.325 million shares. The trading value rose to Rs24.053 billion from Rs23.514 billion. Market capital expanded to Rs9.821 trillion against Rs9.804 trillion. Of 376 companies active in the session, 218 closed in green, 126 in red and 32 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said the session in the Pakistan stock market index was a mix of ups and downs, with the index reaching an intraday high of 287.98 points (up by 0.40 percent) and an intraday low of -276.46 points (down by 0.38 percent), eventually closing at the 72,658 level.

The positive momentum in the index was mainly driven by contributions from TRG, SRVI, SYS, DGKC, and SEARL, collectively adding 115 points. Conversely, ENGRO, FFC, EFERT, BAHL, and HUBC collectively dragged the index down by 170 points.

Investor interest was notably seen in the technology sector, with HUMNL (+11 percent), OCTOPUS (+7.50 percent), TRG (+6.66 percent), and AVN (+3.98 percent) closing higher than their previous day's values.

The highest increase was recorded in Unilever Pakistan Foods Limited shares, which rose by Rs194.80 to Rs19,189.98 per share, followed by Ismail Industries Limited, which increased by Rs89.95 to Rs1,289.29 per share. A significant decline was noted in Bhanero Textile Mills Limited, which fell by Rs63.39 to Rs996.61 per share, followed by Hallmark Company Limited, which closed lower by Rs62.90 to Rs775.72 per share.

Brokerage Arif Habib Ltd said that the equities market witnessed a stable performance with the benchmark index holding steady at the 72,300 points level. Despite being flat on the day, the cement sector concluded its consolidation phase.

The pharma sector continued to display strength, with notable performances from GLAXO (+7.5 percent), CPHL (+4.34 percent), AGP (+6.59 percent), and SEARL (+7.5 percent).

Cement stocks resumed their upward trajectory, with DGKC (+4.96 percent), FCCL (+3.63 percent), FLYNG (+5.66 percent), and POWER (+5.11 percent) leading the gains in the sector.

Overall, the market outlook remains positive, with various sectors showing signs of strength and potential for further upside.WorldCall Telecom remained the volume leader with 175.149 million shares which closed flat at Rs1.51 per share. Pak Elektron followed it with 40.246 million shares, which closed higher by Rs1.85 to Rs27.55 per share.

Other significant turnover stocks included K-Electric Ltd., The Searle Company, Citi Pharma Ltd, Treet Corp, Telecard Limited, Fauji Cement, Agritech Limited and Secure Logistics Gro. In Future Market, 318 companies recorded trading, of which 196 increased, 115 decreased and 7 remained unchanged.