KSE-100 increases by 574 points amid strong valuations

KARACHI: Stocks continued recovery and the benchmark KSE-100 index increased by 574 points on Tuesday amid strong valuations and a decrease in political noise.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index increased by 574.11 points or 0.5 per cent to 114,804.17 points against 114,230.06 points recorded in the last session. The highest index of the day remained at 115,044.79 points, while the lowest level was recorded at 113,836.61 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bullish led by blue scrips in the earning season rally at the PSX on strong valuations.” He said that easing political noise, higher global crude oil prices and speculations over SBP policy announcements played a catalyst role in the bullish close at the PSX.

The KSE-30 index increased by 118.33 points or 0.33 per cent to 36,102.28 points against 35,983.94 points. Traded shares increased by 68 million shares to 589.463 million shares from 521.209 million shares. The trading value rose to Rs32.584 billion from Rs28.287 billion. Market capital narrowed to Rs14.222 trillion against Rs14.362 trillion. Of the 463 companies active in the session, 269 closed in green, 137 in red, and 57 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said the PSX witnessed a robust trading session, with the KSE-100 index reaching an intraday high of 815 points before closing at 114,804, up by 574 points or 0.5 per cent.

The pharmaceutical sector saw strong performance, with BFBIO maintaining its upward momentum and hitting its upper circuit. EngroH weighed heavily on the index, contributing a loss of 145 points.

Key drivers of the positive market movement included UBL, MARI, SYS, ATRL and PSO, collectively adding 486 points to the index. Investors remained optimistic, buoyed by strong performances in multiple sectors, further solidifying the market’s upward trend.

The highest increase was recorded in Hallmark Company Limited, which rose by Rs84.54 to Rs950.05 per share, followed by Philip Morris (Pakistan) Limited, which increased by Rs70.90 to Rs789.76 per share. A significant decline was noted in Nestle Pakistan Limited, which fell by Rs58.04 to Rs7,435.93 per share; Pakistan Engineering Company Limited followed it, which closed lower by Rs56.55 to Rs600.01 per share.

Brokerage Arif Habib Ltd said that the PSX saw further gains on Tuesday as the KSE-100 index reached the 115,000 level, reflecting a strong continuation of this week’s recovery. The recovery appears to be gaining momentum, with solid support at the 112,000 level strengthening market confidence. The index’s early achievement of 115,000 has set the stage for a potential move towards the upper end of the trading range later this week.

Investor sentiment remains positive as market participants look to capitalise on the ongoing recovery. Cnergyico PK remained the volume leader with 42.527 million shares, which closed higher by 26 paisas to Rs7.21 per share. Pak Refinery, with 38.066 million shares, followed it, which closed higher by Rs2.74 to Rs41.5 per share.

Other significant turnover stocks included K-Electric Ltd, WorldCall Telecom, Sui South Gas, Hascol Petrol, Telecard Limited, Pak Stock Exchange, Fauji Foods Ltd and BO Punjab. In the futures market, 301 companies recorded trading, 220 of which increased, 77 decreased and 4 remained unchanged.