KSE-100 up 447 points on strong financial earnings

KARACHI: Stocks witnessed a volatile session on Wednesday, which was later turned into a positive one. The benchmark KSE-100 index closed higher by 447 points amid strong financial earnings. The uncertainty remained in the market until announcement of the monetary policy, which kept the discount rate unchanged at 11 per cent.

The KSE-100 increased by 447.43 points, or 0.32 per cent, to 138,412.25 points from 137,964.82 points recorded in the last session. The highest index of the day remained at 139,018.88 points, while the lowest level was recorded at 137,658.81 points.

Naveed Nadeem, an analyst at Topline Securities, said the session remained volatile, with the index fluctuating between an intraday high of 139,018 and a low of 137,658. Early trading was marked by selling pressure from leveraged investors amid uncertainty over a potential interest rate cut.

However, following the State Bank of Pakistan’s (SBP) decision to keep the policy rate unchanged at 11 per cent in its latest Monetary Policy Committee (MPC) meeting, the market rebounded, led primarily by strength in the banking sector.

The KSE-30 index rose by 180.24 points, or 0.43 per cent, to 42,254.84 points from 42,074.6 points. Traded shares decreased by 181 million shares to 425.836 million shares from 606.334 million shares. The trading value dropped to Rs24.999 billion from Rs32.685 billion. Market capital expanded to Rs16.595 trillion against Rs16.57 trillion. Of the 476 companies active in the session, 152 closed in green, 290 in red, and 34 remained unchanged.

Analyst Ahsan Mehanti at Arif Habib Corp said that strong financial results, surging global equities and global crude oil prices, and rupee stability after the SBP strict vigilance played a catalytic role in the bullish close at the PSX, he said.

Major decliners -- FFC, LUCK, ENGROH, MLCF and DGKC -- collectively dragged the index down by 303 points. In contrast, SYS, UBL and HBL were positive contributors, together adding 481 points to the benchmark.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs399.61 to Rs33,020.02 per share, followed by PIA Holding Company Limited B, which increased by Rs141.57 to Rs31,299 per share. A significant decline was noted in SS Oil Mills Limited, which fell by Rs87.9 to Rs791.08 per share. Nestle Pakistan Limited followed it, which closed lower by Rs78.52 to Rs7,611.32 per share.

BO Punjab remained the volume leader with 24.809 million shares, which closed higher by 25 paisas to Rs13.72 per share. Cres Star Ins, with 20.904 million shares, followed it, which closed higher by 82 paisas to Rs4.34 per share.

Other significant turnover stocks included Maple Leaf, Systems Limited, K-Electric Ltd, WorldCall Telecom, Aisha Steel Mill, Agha Steel Ind, Telecard Limited and Bunnys Limited.In the futures market, 320 companies recorded trading, 112 of which increased, 205 decreased, and 3 remained unchanged.