KSE-100 witnesses strong recovery of 1,914 points

KARACHI: Stocks recorded a strong recovery on Wednesday, and the benchmark KSE-100 Index surged by 1,914 points amid speculations that the Monetary Policy Committee (MPC) of the State Bank of Pakistan (SBP) will cut the key policy rate significantly, as inflation has remained at a lower level.

The KSE-100 index surged by 1,913.57 points or 1.76 per cent to 110,810.22 points against the 108,896.65 points recorded in the last session. The highest index of the day remained at 111,012.02 points while the lowest level was recorded at 109,416.32 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said stocks are rising across the board as investors react to positive news, including a 62 per cent year-on-year increase in car sales for November 2024 and a recent reduction in National Savings Scheme (NSS) rates. This has sparked new speculation that the SBP may ease its monetary policy this week.”

He said that robust economic indicators, surging global crude oil prices and a recovery in global equities on receding geo-political tensions played a catalyst role in the new record close at the PSX.

The KSE-30 index increased by 620.52 points or 1.84 per cent to 34,429.24 points against 33,808.72 points.

Traded shares decreased by 488 million shares to 1,080.023 million shares from 1,548.302 million shares. The trading value dropped to Rs47.139 billion from Rs68.805 billion. Market capital expanded to Rs14.151 trillion against Rs13.891 trillion. Of the 472 companies active in the session, 288 closed in green, 130 in red and 54 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said the KSE-100 index surged to a historic high of 110,810, reflecting a notable gain of 1,914 points, or 1.76 per cent. “The market maintained an upward trajectory, supported by strong buying activity from local institutions, and reached an intraday peak of 111,012,” he said.

Key contributors included MARI, PPL, OGDC, DAWH and UBL, which together added 1,002 points to the index.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs504.95 to Rs20,835.5 per share, followed by Khyber Textile Mills Limited, which increased by Rs53.11 to Rs684.99 per share. A significant decline was noted in Nestle Pakistan Limited, which fell by Rs175.54 to Rs7,155.27 per share; Mehmood Textile Mills Limited followed it, which closed lower by Rs59.14 to Rs562.53 per share.

Analyst Muhammad Hasan Ather at JS Global said the KSE-100 staged a significant recovery, strongly rebounding after Tuesday’s profit-taking session. “This rebound was also supported by increased local buying led by mutual funds.”

K-Electric Ltd remained the volume leader with 135.915 million shares which closed higher by 49 paisas to Rs6.40 per share. WorldCall Telecom with 73.534 million shares followed it, which closed lower by one paisa to Rs1.65 per share.

Other significant turnover stocks included Fauji Foods Ltd, Lotte Chemical, Cnergyico PK, Sui South Gas, Treet Corp, PTCL, Symmetry Group Ltd and Treet Battery Ltd. In the futures market, 306 companies recorded trading, 244 of which increased, 57 decreased, and 5 remained unchanged.