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Index rises 1,104 points over improving macro outlook, easing geopolitical concerns
A stock broker reacts while monitoring the market on the electronic board displaying share prices during trading session at the Pakistan Stock Exchange, in Karachi on July 3, 2023. Photo: Reuters/ File
KARACHI:
The Pakistan Stock Exchange (PSX) maintained its upward march on Tuesday as the benchmark KSE-100 index surged by 1,104 points, or +0.66%, to close near the session high at 167,347.
The market reached the intra-day high at 168,414 while the day’s low was at 166,924, reflecting movement of the index in a wide band. Investor confidence appeared to strengthen, underpinned by an improving macroeconomic outlook and easing geopolitical concerns. Stock analysts cited foreign inflows, expectations of monetary easing and clarity on the fiscal front as key contributing factors.
Broad-based buying was observed across sectors like automobile assemblers, commercial banks, fertiliser, oil and gas exploration and marketing, power and refineries. Heavyweight stocks including Oil and Gas Development Company (OGDC), Pakistan Petroleum, Pakistan Oilfields, Pakistan State Oil (PSO), Mari Energies, Hub Power, Attock Refinery, MCB Bank and National Bank of Pakistan (NBP) led gains, reflecting deep institutional interest.
Arif Habib Limited (AHL), in its report, highlighted that follow-through demand pushed the KSE-100 index into the 168,000 range in intra-day trading before it came off highs to close with a 0.66% day-on-day rise.
In total, 55 shares rose while 45 declined, with The Bank of Punjab (BOP, +5.17%), Fauji Fertiliser (+1.32%) and MCB Bank (+3.29%) contributing the most to index gains. Conversely, Engro Holdings (-1%), K-Electric (-6.87%) and United Bank (-0.33%) were the biggest index drags, AHL stated.
In a significant development, the National Electric Power Regulatory Authority (Nepra) reduced the multi-year tariff base for K-Electric to Rs32 per unit from Rs39.97 per unit in a review petition filed by the government – a move the utility deems unsustainable.
Meanwhile, the International Monetary Fund (IMF) allowed the government to build its grain reserves without setting a cap on the stock size. AHL said that support for the index has risen to 166,000, with the upside targeting new all-time highs.
KTrade Securities observed that the PSX experienced another strong rally as the benchmark KSE-100 index surged by 1,104 points, or 0.66%, closing at an impressive 167,347. This notable increase was led by Bank AL Habib, Fauji Fertiliser, MCB Bank, OGDC and Pakistan Petroleum, which highlighted broad-based strength across key sectors.
Market activity remained robust, where the KSE All-share Index recorded a substantial trading volume of 1.82 billion shares, reflecting strong investor participation, it said.
Looking ahead, KTrade expected market sentiment to improve further, supported by encouraging developments. The recent staff-level agreement with the International Monetary Fund (IMF) provides a positive outlook for economic reforms and financial stability. Meanwhile, progress in regional diplomacy, particularly the thaw between Pakistan and Afghanistan, aided investor confidence, it added.
Topline Securities commented that the KSE-100 index wrapped up Tuesday’s session on a strong footing, closing at 167,347 after registering a gain of 1,104 points. The market sustained its upward momentum following the ceasefire announcement, with the index oscillating between an intra-day high of 168,414 and a low of 166,924.
The bullish trend was largely fuelled by exceptional performances in Bank AL Habib, Fauji Fertiliser Company, MCB Bank, OGDC and Pakistan Petroleum, which added 830 points to the index. However, the overall advance was modestly curtailed by profit-taking in Engro Holdings, K-Electric and UBL, which erased 161 points. Investor confidence remained elevated, as reflected in the heightened trading activity, Topline wrote.
Overall trading volume increased to 1.82 billion shares, compared with Monday’s tally of 1.48 billion. The value of traded shares stood at Rs56.8 billion. PSX announced on X that 46% of the total equity value traded was in Shariah-compliant stocks.
Shares of 486 companies were traded. Of these, 216 closed higher, 229 declined and 41 remained unchanged. K-Electric continued to lead the volume chart with 547.3 million shares traded, losing Rs0.48 to close at Rs6.51. It was followed by WorldCall Telecom, which saw 260.9 million shares change hands, losing Rs0.11 to close at Rs2.05 and BOP with 128.9 million shares, gaining Rs0.32 to close at Rs39.73. Foreign investors bought shares worth Rs491.1 million, according to NCCPL.
