Stocks up 800 points as political uncertainty subsides after constitutional changes

KARACHI: The Pakistan Stock Exchange (PSX) kicked off the week on a strong note, with the KSE-100 index rising 0.95 per cent on Monday. The surge came after the ruling coalition approved changes to the constitution, curbing the powers of the judiciary to appoint its chief, in a significant show of strength in parliament.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index increased by 807.42 points or 0.95 per cent to 86,057.52 points against 85,250.09 points recorded in the last session. The highest index of the day remained at 86,172.79 points while the lowest level was recorded at 85,349.33 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks showed sharp recovery in the early session led by scrips across the board after NA passed constitutional amendments ending political uncertainty.

He said that speculations in the earnings season and easing lending rates played a catalyst role in the bullish activity at the PSX.The KSE-30 index increased by 241.27 points or 0.9 per cent to 27,044.31 points against 26,803.04 points.

Traded shares increased by 151 million shares to 474.949 million shares from 323.919 million shares. The trading value rose to Rs19.659 billion from Rs15.679 billion. Market capital expanded to Rs11.29 trillion against Rs11.177 trillion. Of the 445 companies active in the session, 269 closed in green, 124 in red and 52 remained unchanged.

Naveed Nadeem, analyst at Topline Securities, said the session exhibited positive momentum following a reduction in political uncertainty, highlighted by the Senate’s approval of the 26th Constitutional Amendment Bill 2024, which passed with a two-thirds majority on Sunday evening. Subsequently, the National Assembly also ratified this contentious legislation.

Key contributors to the index included MTL, UBL, ATRL, HUBC, and PIOC, which collectively added 274 points. The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs212.49 to Rs17,740.64 per share, followed by Hoechst Pakistan Limited, which increased by Rs127.77 to Rs2,346.90 per share. A significant decline was noted in Hallmark Company Limited, which fell by Rs46.43 to Rs800.18 per share; Pakistan Tobacco Company Limited followed it, which closed lower by Rs37.02 to Rs1,159.8 per share.

Brokerage Arif Habib Ltd stated that outlook for the market remains positive, with near-term support expected around the 85,000-point level.Ferozsons Laboratories (FEROZ) slipped 1.28 per cent, despite being one of six global manufacturers selected by Gilead Sciences to produce its HIV shots. Additionally, BF Biosciences Limited (BFBIO), a joint venture between Ferozsons and Argentina-based Bago Group, commenced its first day of trading on the PSX.

Analyst Mohammed Waqar Iqbal at JS Research said following the Senate’s ratification of the 26th Constitutional Amendment Bill, political stability boosted the market’s opening momentum. “With several key announcements expected this week, corporate earnings remain the central focus,” he said.

Kohinoor Spinning remained the volume leader with 59.101 million shares which closed higher by 94 paisas to Rs8.18 per share. Pak Int Bulk followed it with 27.872 million shares, which closed higher by 41 paisas to Rs7.05 per share.

Other significant turnover stocks included Flying Cement, Hum Network, PTCL, WorldCall Telecom, Hub Power Co, Fauji Foods Ltd, Pak Refinery XD and Pak Stock. In the futures market, 319 companies recorded trading, of which 229 increased, 86 decreased and 4 remained unchanged.