Stocks up 1,348 points to another all-time high amid pre-budget rally

KARACHI: Bullish momentum continued at the Pakistan Stock Exchange (PSX) on Wednesday. The benchmark KSE-100 index surged by 1,348 points to another all-time high amid the pre-budget rally, as investors weigh government efforts to abolish further sales tax.

The benchmark KSE 100 Index surged by 1,347.99 points, or 1.12 per cent, to 121,798.87 points, up from 120,450.87 points recorded in the last session. The highest index of the day remained at 121,798.87 points, while the lowest level was recorded at 120,896.13 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed at a new all-time high led by scrips across the board in the pre-budget rally at the PSX as investors weigh government efforts to abolish further sales tax; provincial power tariff relief; and PM hints over success in government-IMF budget talks.”

He said that a surge in POL sales by 10 per cent YoY in May; surging cement exports; and the ADB’s approval of the $800 million financing package supporting rupee stability played a catalytic role in the record bullish close. The KSE-30 index increased by 399.91 points or 1.09 per cent to 36,983.92 points from 36,584.01 points.

Traded shares rose by 132 million shares to 710.591 million shares from 578.163 million shares. The trading value increased to Rs35.216 billion from Rs26.827 billion. Market capital expanded to Rs14.749 trillion against Rs14.593 trillion. Of the 475 companies active in the session, 264 closed in green, 170 in red and 41 remained unchanged.

Analyst Naveed Nadeem at Topline Securities said the bullish momentum from the previous session carried forward, fuelled by robust buying from local and corporate institutions, as indicated by NCCPL data.

The key drivers of the rally included heavyweight stocks such as NBP, BAHL, SYS, LUCK, and MCB, which collectively contributed 586 points to the KSE-100 index’s upward trajectory.

The highest increase was recorded in Supernet Technologies Limited, which rose by Rs79.11 to Rs870.21 per share, followed by Pakistan Engineering Company Limited, which increased by Rs74.48 to Rs819.30 per share. A significant decline was noted in PIA Holding Company Limited B, which fell by Rs3,554.32 to Rs31,988.87 per share; Khyber Textile Mills Limited followed it, which closed lower by Rs337.68 to Rs3,039.08 per share.

Mubashir Anis Naviwala, an analyst at JS Global, said the KSE-100 surged at open and maintained strong momentum, hitting a new intraday high and settling at a record closing. “With this powerful breakout above previous highs, the index is poised for continued upward momentum, potentially attracting increased institutional flows,” he said. “We advise investors to take advantage of intraday dips and accumulate fundamentally strong stocks in the fertiliser, cement, and banking sectors to benefit from the ongoing bullish sentiment.”

Sui South Gas remained the volume leader with 51.634 million shares, which closed higher by Rs2.11 to Rs38.42 per share. Fauji Foods Ltd, with 51.388 million shares, followed it, which closed higher by 56 paisas to Rs16.75 per share.

Other significant turnover stocks included K-Electric Ltd, Invest Bank, Faysal Bank, BO Punjab, National Bank XD, Treet Corp, WorldCall Telecom, and Big Bird Foods Ltd. In the futures market, 314 companies recorded trading, 201 of which increased, 107 decreased and 6 remained unchanged.