Stocks hit new all-time high, close above 86k mark

KARACHI: Stocks continued upward momentum on Wednesday and closed to an all-time high above 86k mark amid speculations over economic commitments in the Shanghai Cooperation Organisation (SCO) summit.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index increased by 365.32 points or 0.43 per cent to 86,205.66 points against 85,840.34 points recorded in the last session. The highest index of the day remained at 86,513.46 points while the lowest level was recorded at 85,948.05 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed record high in the earnings season rally at PSX as investors weigh easing political noise and speculations over economic commitments in the SCO summit.”

He said that a slump in bond yields, and government deliberation on privatisation of SOEs played a catalyst role in the bullish activity in the PSX.The KSE-30 index increased by 2.03 points or 0.01 per cent to 27,236.2 points against 27,234.16 points.

Traded shares increased by 52 million shares to 474.333 million shares from 422.107 million shares. The trading value rose to Rs26.942 billion from Rs24.467 billion. Market capital expanded to Rs11.269 trillion against Rs11.228 trillion. Of the 445 companies active in the session, 227 closed in green, 150 in red and 68 remained unchanged.

Maaz Mulla, analyst at Topline Securities, said the KSE-100 index soared to a record-breaking 86,205 points, fuelled by investor optimism following the successful Shanghai Cooperation Organisation (SCO) summit.

The summit heightened expectations of regional political and economic stability, strengthening market confidence. “This positive sentiment, combined with robust corporate earnings, ignited a broad-based rally across multiple sectors,” he said.

LPL, NPL and NCPL hit their upper circuit limits after news broke that the government will release outstanding amount and also proposed four ‘take and pay’ options for 18 independent power producers (IPPs) established under the Power Generation Policies of 1994 and 2002. This development further uplifted sentiment in the power sector, adding momentum to the market’s rally.

Major contributors to the index’s rise included PPL, HUBC, PSO, OGDC, and SEARL, which collectively added 368 points. The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs156.55 to Rs17,634 per share, followed by Rafhan Maize Products Company Limited, which increased by Rs138.57 to Rs7,259.71 per share. A significant decline was noted in Hallmark Company Limited, which fell by Rs88.51 to Rs796.55 per share; Sapphire Textile Mills Limited followed it, which closed lower by Rs62.07 to Rs1,146.41 per share.

Brokerage Arif Habib Ltd stated that the PSX saw a surge in activity on Wednesday as old highs were tested intraday but contained by the close.With the old highs tested, some consolidation is expected at current levels, with further upside anticipated as the market continues to find support around 84,000.

The Searle Company remained the volume leader with 26.011 million shares which closed higher by Rs5.29 to Rs63.32 per share. Hub Power Co followed it with 24.345 million shares, which closed higher by Rs2.90 to Rs101.73 per share.

Other significant turnover stocks included Hum Network, Cnergyico PK, Pak Refinery XD, Maple Leaf, Kohinoor Spinning, PTCL, Fauji Cement XD and Nishat Power XD. In the futures market, 313 companies recorded trading, of which 161 increased, 139 decreased and 13 remained unchanged.