KARACHI: Stocks continued the bullish momentum on Friday. The benchmark KSE-100 index surged by 1,049 points, as investors found value at the dip besides speculations in the earnings season.
The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged by 1,049.33 points, or 0.93 per cent, to 114,255.73 points, up from the 113,206.4 points recorded in the last session. The highest index of the day remained at 115,106.99 points, while the lowest level was recorded at 113,692.87 points.
Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bullish led by scrips across the board on investor speculations in the earning season.” He said the government revised contracts with 14 IPPs, surging global crude oil prices and strong earnings in the banking, and cement sectors impacted the sentiments. “[The] SBP hints over further rate cuts amid thin inflation, government measures, rupee stability and falling government bond yields played a catalyst role in a record surge at the PSX,” he added.
The KSE-30 index increased by 304.29 points or 0.86 per cent to 35,869.52 points against 35,565.23 points. Traded shares increased by 60 million shares to 543.124 million shares from 483.939 million shares. The trading value rose to Rs27.973 billion from Rs26.103 billion. Market capital expanded to Rs14.053 trillion against Rs13.955 trillion. Of the 454 companies active in the session, 234 closed in green, 164 in red, and 56 remained unchanged.
Analyst Nabeel Haroon at Topline Securities said the KSE-100 index continuing its previous day momentum gained 1,049 points (up by 0.93 per cent) to close at 114,256 points. “This positivity can be attributed to recent decline in market that created room for value investors to buy the dip,” he said.
SAZEW from the auto sector after remaining sluggish for some time, found some momentum, as it gained to close 6 percent higher, this interest in the stock can be accredited to investor optimism regarding sales number for its four-wheeler brand HAVAL for the month of January.
The highest increase was recorded in Ismail Industries Limited, which rose by Rs97.89 to Rs1,947.89 per share, followed by PIA Holding Company Limited B, which increased by Rs89.07 to Rs979.73 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs81.50 to Rs22,305.50 per share; Mehmood Textile Mills Limited followed it, which closed lower by Rs28.14 to Rs644.24 per share.
Brokerage Arif Habib Ltd stated that the KSE-100 climbed toward the upper end of its current range (112k-115.5k), touching a high of 115.1k during the session.
UBL (+4.74 per cent), LUCK (+6.02 per cent), and NBP (+10 per cent) made the strongest contributions to index gains. On the flip side, MARI (-1.59 per cent), FFC (-0.23 per cent), and MEHT (-4.19 per cent) were the largest drags.
Investors remain focused on the IMF mission, which is expected to visit Pakistan by late February or early March for the first review of the $7 billion Extended Fund Facility (EFF). With a likely low established this week, the market appears set to break through key resistance levels in the coming days.
Cnergyico PK remained the volume leader with 66.683 million shares, which closed higher by 8 paisas to Rs7.75 per share. WorldCall Telecom, with 37.804 million shares, followed it, which closed lower by 6 paisas to Rs1.64 per share.
Other significant turnover stocks included Bank Makramah, B.O. Punjab, Sui South Gas, Pak Refinery, K-Electric Ltd., Treet Battery Ltd, Citi Pharma Ltd, and Fauji Foods Ltd. In the futures market, 301 companies recorded trading, 155 of which increased, 143 decreased and 3 remained unchanged.
