Stocks start week with gain of 282 points amid rally in banking sector

KARACHI: Stocks closed higher by 282 points on Monday to new highs amid the rally in the banking sector on strong earnings outlook.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index increased by 281.55 points or 0.29 per cent to 98,079.78 points against 97,798.23 points recorded in the last session. The highest index of the day remained at 99,317.48 points while the lowest level was recorded at 97,137.64 points.

Analyst Ahsan Mehanti at Arif Habib Corp said that the combination of a favourable earnings outlook for banks and reduced political tension due to the court’s decision helped the stock market close on a higher note for the day.

He said that upbeat economic indicators, rupee stability and surging FX reserves played a catalyst role in the bullish activity.However, mid-session challenges like volatility from futures rollover, political uncertainties related to PTI protests, and broader geopolitical concerns prevented the market from sustaining its momentum or gaining further.

The KSE-30 index increased by 78.02 points or 0.26 per cent to 30,558.73 points against 30,480.71 points.Traded shares plunged by 609 million shares to 640.258 million shares from 1,249.092 million shares. The trading value dropped to Rs25.623 billion from Rs45.475 billion. Market capital expanded to Rs12.533 trillion against Rs12.518 trillion. Of the 460 companies active in the session, 220 closed in green, 185 in red and 55 remained unchanged.

Naveed Nadeem, an analyst at Topline Securities, said the KSE-100 Index closed at 98,080, posting a gain of 282 points or 0.29 per cent. The market maintained a bullish trend, reaching an intraday high of 99,317. Investor confidence was buoyed by unconfirmed speculation that the State Bank of Pakistan (SBP) may offer relaxation to banks regarding minimum deposit rates for savers.

Key contributors to the index’s rise included BAHL, UBL, MEBL, SYS, and MCB, which collectively added 555 points to the index.The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs117.14 to Rs19,132 per share, followed by Pakistan Services Limited, which increased by Rs46.11 to Rs941.47 per share. A significant decline was noted in PIA Holding Company Limited B, which fell by Rs95.96 to Rs902.28 per share; Rafhan Maize Products Company Limited followed it, which closed lower by Rs59.95 to Rs7,954.55 per share.

Hascol Petrol remained the volume leader with 64.823 million shares which closed higher by Rs1.12 to Rs12.35 per share. Cnergyico PK followed it with 48.065 million shares, which closed higher by 22 paisas to Rs4.71 per share.

Other significant turnover stocks included Fauji Foods Ltd, WorldCall Telecom, K-Electric Ltd., Sui South Gas, Treet Battery Ltd., BO Punjab, Waves Home App and Lotte Chemical.In the futures market, 310 companies recorded trading, of which 179 increased, 127 decreased and 4 remained unchanged.