KSE-100 gains 728 points, settles above 79k amid expectations of higher SOE earnings

KARACHI: Stocks closed significantly higher on Tuesday amid expectations of better earnings in the half-year results by state-owned enterprises in the oil sector.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share Index increased by 728.55 points or 0.92 per cent to 79,552.89 points against 78,824.33 points recorded in the last session. The highest index of the day remained at 79,740.35 points while the lowest level was recorded at 78,978.55 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed bullish ahead of corporate earnings season as investors weigh upbeat data on CPI inflation that stood at 12.6 per cent YoY in June 24 averaging headline inflation to 23.4 per cent YoY.”

He said surging global crude oil prices; expectations for strong dividend payouts by oil-sector SOEs; and progressive positive talks for the IMF bailout deal this month played a catalyst role in the bullish activity in the PSX.

The KSE-30 index increased by 214.29 points or 0.84 per cent to 25,583.56 points against 25,369.27 points.Traded shares increased by 107 million shares to 413.153 million shares from 306.038 million shares. The trading value increased to Rs16.597 billion from Rs13.746 billion. Market capital expanded to Rs10.517 trillion against Rs10.432 trillion. Of 431 companies active in the session, 246 closed in green, 128 in red and 57 remained unchanged.

Naveed Nadeem, an analyst at Topline Securities, said the equity market saw positive movement on Tuesday. The KSE-100 index reached an intraday high of 79,740 points (+916 points), closing at 79,553 points (up 729 points, a gain of 0.91 per cent).

The fertiliser, exploration & production (E&P), and banking sectors, led by FFC, PPL, NBP, INIL, and UBL, were key contributors collectively adding 340 points.

The highest increase was recorded in Philip Morris (Pakistan) Limited shares, which rose by Rs50.28 to Rs608.91 per share, followed by Data Agro Limited, which increased by Rs24.07 to Rs291.52 per share. A significant decline was noted in Sapphire Fibres Limited, which fell by Rs123.80 to Rs1,466.20 per share; Nestle Pakistan Limited followed it, which closed lower by Rs69.95 to Rs6,931 per share.

Brokerage Arif Habib Ltd stated the KSE-100 index saw additional gains, bringing it closer to the top of the current 78-80k trading range.

On the downside, PSEL (-3.07 per cent), IBFL (-7.5 per cent), and MARI (-0.52 per cent) were the largest detractors. Despite these declines, the overall sentiment remained positive, buoyed by sector-specific developments.

Notably, CPHL (+9.0 per cent) announced a significant partnership with Murli Krishna Pharma, which will supply active pharmaceutical ingredients and products to CPHL. This agreement is expected to expand CPHL’s supply network to the US, Saudi Arabia, and other countries, further enhancing its growth prospects.

The increasing market breadth supports expectations that the KSE-100 index could move through the top of its current trading range, potentially signalling further upside. Investors are optimistic about the market’s ability to break through the 80k level, driven by strong performances in key sectors and positive corporate developments.

As the market approaches these critical levels, all eyes will be on whether the KSE-100 can sustain its momentum and continue its upward trajectory.WorldCall Telecom remained the volume leader with 23.801 million shares which closed higher by 2 paisas to Rs1.27 per share. K-Electric Ltd followed it with 23.104 million shares, which closed higher by 16 paisas to Rs4.73 per share.

Other significant turnover stocks included National Bank XD, Dewan Motors, Fauji Fert Bin, PTCL, AKD Securities L, BO Punjab, Agritech Limited and Pak Petroleum.In the futures market, 306 companies recorded trading, of which 236 increased, 64 decreased and 6 remained unchanged.