Stocks up 385 points on record remittances, Fitch rating

KARACHI: The Pakistan Stock Exchange (PSX) continued bullish momentum on Tuesday. The benchmark KSE-100 index increased by 385 points as investors weighed record remittances numbers and a Fitch rating upgrade.

The KSE-100 index increased by 385.47 points, or 0.33 per cent, to 116,775.5 points, up from the 116,390.04 points recorded in the last session. The highest index of the day remained at 117,362.23 points, while the lowest level was recorded at 116,645.69 points.

Muhammad Hasan Ather, an analyst at JS Global, said the upward trajectory was fuelled primarily by record-breaking $4.1 billion remittances and the SBP governor’s optimistic projection of $14 billion forex reserves by June 2025. “Market sentiment received additional support from expectations of a Fitch rating upgrade,” he said.

With improving external accounts and strong liquidity flows, we expect continued positive momentum in the market, particularly in banking and export-oriented sectors. “Investors should maintain bullish positions while monitoring upcoming corporate earnings,” he suggested.

The KSE-30 index increased by 153 points or 0.43 per cent to 35,849.26 points from 35,696.26 points. Traded shares decreased by five million shares to 479.465 million shares from 484.547 million shares. The trading value rose to Rs30.449 billion from Rs27.43 billion. Market capital expanded to Rs14.29 trillion against Rs14.252 trillion. Of the 447 companies active in the session, 219 closed in green, 174 in red, and 54 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said the PSX ended on a strong note, with the KSE-100 index gaining 385 points, or 0.33 per cent, to close at 116,775. “The positive momentum was supported by stability in global markets and the onset of the corporate results season, prompting investors to take fresh positions,” he said.

Gains were largely driven by key index movers including ENGROH, LUCK, OGDC, TRG and PSO, which collectively added 325 points to the index.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs184.62 to Rs23,294.62 per share, followed by PIA Holding Company Limited B, which increased by Rs142.36 to Rs1,604.76 per share. A significant decline was noted in Philip Morris (Pakistan) Limited, which fell by Rs85.61 to Rs1,175.87 per share; Nestle Pakistan Limited followed it, which closed lower by Rs58.56 to Rs7,114.77 per share.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed higher at the PSX, buoyed by the ongoing earnings season rally and reports of Fitch Ratings upgrading Pakistan’s Long-Term Foreign Currency Issuer Default Rating to ‘B-’ with a stable outlook.

He said that surging global equities, upbeat economic data on remittances and inflation played a catalyst role in the bullish close.Cnergyico PK remained the volume leader with 32.091 million shares, which closed lower by 11 paisas to Rs8.53 per share. TRG Pak Ltd, with 21.511 million shares, followed it, which closed higher by Rs4.01 to Rs67.9 per share.

Other significant turnover stocks included BO Punjab, Dewan Cement, Sui South Gas, Fauji Foods Ltd, Engro Powergen, Secure Logistics Gro, Pak Refinery and At-Tahur Ltd. In the futures market, 325 companies recorded trading, 167 of which increased, 151 decreased, and 7 remained unchanged.