Stocks surge past 50,000-point barrier

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KSE-100 index gains 933.67 points over expectations of reduction in SBP’s policy rate


On Thursday, the Pakistan Stock Exchange (PSX) was back in the drivers seat as the market surged over 900 points and comfortably crossed the 50,000 barrier over expectations of a reduction in State Bank’s policy rate.

In spite of the fact that trading began on a positive note, the KSE-100 index immediately plunged to the intra-day low of 49,436.92 points as speculation persists that the rupee may continue to depreciate against the dollar.

However, the bourse recovered losses due to a strong rupee recovery and an agreement with China for the investment of $1.5 billion in the petroleum industry.

As a result of the scores of agreements and memorandum of understanding signed during Prime Minister Anwaarul Haq Kakar’s visit to China for the Belt and Road Forum, investors’ sentiment was revived, which ultimately led to the index reaching its intra-day high of 50,399.92 points.

PSX rises on rupee surge, Gulf investment

Among the sectors contributing over 400 points to the index, fertilisers and exploration and production (E&P) were most popular with investors.

A strong rupee recovery and a $1.5 billion deal with China for investment in the petroleum sector contributed to bullish activity, according to Arif Habib Corp’s MD Ahsan Mehanti.

Despite a strong earnings outlook and a surge in crude oil prices, oil stocks outperformed. In addition, easing political noise and optimism ahead of the release of the next IMF loan tranche also played a significant role in the bullish close.”

The benchmark KSE-100 index closed at 50,365.15, up 933.67 points, or 1.89%.

The KSE-100 index surged 1.89%, surpassing the pivotal 50,000 threshold, according to Topline Securities’ market review.

Read also: PSX surges

An important factor contributing to the index’s performance was the prevalent positive sentiment in response to Wednesday’s T-bill auction. According to it, “this auction caused the market to believe that interest rates have reached their peak and that rates are likely to remain stable or decrease in the future.”.

A total of 440 points were contributed by the fertilizer and E&P sectors to the index. Rafhan Maize Products, TRG Pakistan, and Ibrahim Fibres collectively lost 23 points, according to Topline.

The KSE-100 rose 1.89% and the KSE-30 gained 2.29% on the day, as reported by Arif Habib Limited (AHL).

According to the report, the top contributors were Pakistan Petroleum Limited (+7.06%), Engro (+4.91%), Hubco (+3.55%), Oil and Gas Development Company (+4.43%) and Pakistan State Oil (+7.5%). “The 49.3k level remains the line in the sand, and the next upward move is expected at the 2017 highs of 53k,” stated AHL.

With gains of 934 points, the KSE-100 index passed the 50,000 level, according to JS Global analyst Muhammad Shuja Qureshi.

Oil and gas and automotive sectors led the rally, with PSO (+7.5%), Sui Northern Gas Pipelines (+7.5%), Ghandhara Automobiles (+7.1%), Ghandhara Industries (+7.5%), Pak Suzuki (+7.5%), and Sazgar Engineering Works (+7.5%) closing at their respective upper locks.

“The market is expected to maintain its positive momentum with periods of profit-taking,” the analyst explained.

In total, 427.5 million shares were traded compared to 332.6 million shares traded on Wednesday. During the day, Rs14.6 billion worth of shares were traded.

There were trades in the shares of 361 companies. There were 255 stocks that closed higher, 94 stocks that closed lower, and 12 stocks that closed unchanged.

With trading in 83.2 million shares, K-Electric gained Rs0.29 to close at Rs3.37. Next was Pakistan Refinery with 37.7 million shares, which gained Rs0.6 to close at Rs17.47, and WorldCall Telecom with 25.9 million shares, which lost Rs0.01 to close at Rs1.28.

According to the NCCPL, foreign investors sold shares worth Rs14.5 million.

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