Stocks surge 836 points on growing economic optimism, close above 94,000

KARACHI: Stocks surged by 836 points on Thursday to close to another all-time high -- above 94,000 -- amid growing economic optimism. The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index increased by 836.47 points or 0.9 per cent to 94,191.89 points against 93,355.43 points recorded in the last session. The highest index of the day remained at 94,289.97 points while the lowest level was recorded at 93,672.72 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed at a new all-time high led by blue-chip scrips on strong earnings outlook.” He said that rupee stability, receding fears over mini budget and the government’s assurances to the IMF on the $5 billion external funding gap, support from Saudi over oil deferred payments, and rollovers from China’s Exim Bank for project debts played a catalyst role in the bullish close at the PSX.

The KSE-30 index increased by 270.15 points or 0.93 per cent to 29,201.09 points against 28,930.94 points.Traded shares increased by 277 million shares to 1,084.344 million shares from 807.067 million shares. The trading value rose to Rs32.68 billion from Rs31.688 billion. Market capital expanded to Rs12.152 trillion against Rs12.051 trillion. Of the 465 companies active in the session, 262 closed in green, 147 in red and 56 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said this positive trend can be attributed to growing economic optimism, fuelled by reports that the IMF expressed no concerns over Pakistan’s progress in meeting revenue collection targets. As a result, fears of an imminent mini-budget and new taxation measures have eased.

Investor interest surged in the banking sector following news that Pakistani banks secured temporary relief from the Islamabad High Court against a government tax linked to shortfalls in private sector lending. This relief will remain in effect until a final decision is reached, with hearings scheduled to commence on Dec 3, 2024.

The index was boosted by positive contributions from UBL, OGDC, HBL, MVB, and TRG, which collectively added 455 points to the index. The highest increase was recorded in Rafhan Maize Products Company Limited, which rose by Rs299 to Rs7,900 per share, followed by PIA Holding Company Limited B, which increased by Rs68.74 to Rs899.98 per share. A significant decline was noted in Pakistan Engineering Company Limited, which fell by Rs67.74 to Rs707.26 per share; Philip Morris (Pakistan) Limited followed it, which closed lower by Rs37.45 to Rs790.22 per share.

Brokerage Arif Habib Ltd stated that the KSE-100 Index showed upward momentum, moving firmly through the 92,000-94,000 range.Heading into the final session of the week, the KSE-100 stands +0.8 per cent week-on-week, holding above the 94,000 mark, which may now serve as a new support level.

WorldCall Telecom remained the volume leader with 177.393 million shares which closed higher by 12 paisas to Rs1.38 per share. Hascol Petrol followed it with 59.224 million shares, which closed higher by Re1 to Rs8.21 per share.

Other significant turnover stocks included Treet Battery Ltd., Sui South Gas, Cnergyico PK, TPL Properties, Treet Group, Telecard Limited, Pak Refinery and Fauji Foods Ltd.In the futures market, 311 companies recorded trading, of which 213 increased, 91 decreased and 7 remained unchanged.