KSE-100 surges 3pc, up 3,135 points as investors eye higher cuts

KARACHI: The KSE-100 index surged by 3,135 points to another all-time high on Thursday amid expectations for a higher cut by the central bank next week. The market was led by investment by mutual funds.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged by 3,134.63 points or 2.98 per cent to 108,238.97 points against 105,104.34 points recorded in the last session. The highest index of the day remained at 108,345.99 points while the lowest level was recorded at 105,448.06 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed record bullish to a new all-time high led by scrips across the board as investors eye imminent SBP policy easing amid thin inflation data and robust economic indicators.”

He said that rupee stability, falling lending rates, and falling government debt stock and government bond yields played a catalyst role in the record close at the PSX.The KSE-30 index increased by 1,139.39 points or 3.5 per cent to 33,693.53 points against 32,554.14 points.

Traded shares decreased by 102 million shares to 1,647.134 million shares from 1,749.316 million shares. The trading value rose to Rs63.229 billion from Rs50.416 billion. Market capital expanded to Rs13.745 trillion against Rs13.356 trillion. Of the 473 companies active in the session, 307 closed in green, 129 in red and 37 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the PSX witnessed another exhilarating trading session as the bullish momentum continued unabated. The benchmark KSE-100 index surged to an intraday high of 3,241 points, fuelled by heightened investor confidence and robust market sentiment surrounding expectations of a substantial rate cut in the upcoming monetary policy meeting, scheduled for December 16, 2024.

Record-breaking volumes underscored the day’s intense trading activity, reflecting broad-based participation across sectors. The rally was predominantly driven by relentless buying from local mutual funds, the primary catalyst for sustaining the bull run. Blue-chip stocks and high-capitalisation sectors spearheaded the advance, with major contributions from MARI, FFC, HUBC, UBL, PPL, and LUCK, collectively adding 1,303 points to the index’s stellar performance.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs481.08 to Rs20,681.08 per share, followed by Sapphire Fibres Limited, which increased by Rs101.64 to Rs1,214.02 per share. A significant decline was noted in Hafiz Limited, which fell by Rs24.27 to Rs238.23 per share; Fateh Sports Wear Limited followed it, which closed lower by Rs11.20 to Rs100.77 per share.

Brokerage Arif Habib Ltd said the PSX continued its bullish momentum, with the KSE-100 Index surging 3.0 per cent day-on-day, bringing total gains to 8.0 per cent since breaking the 100,000 barrier.

The market shows no signs of weakness, with the path of least resistance remaining firmly to the upside, reinforcing confidence in further gains ahead.BO Punjab remained the volume leader with 163.462 million shares which closed higher by Re1 to Rs10.09 per share. WorldCall Telecom with 150.476 million shares followed it, which closed lower by 2 paisas to Rs1.59 per share.

Other significant turnover stocks included Cnergyico PK, Sui South Gas, Fauji Foods Ltd, Pak Int. Bulk, Pak Refinery, K-Electric Ltd, Silk Bank Ltd and Pace (Pak) Ltd. In the futures market, 306 companies recorded trading, 253 of which increased, 52 decreased, and one remained unchanged.