PSX extends gains, nears 66,000 mark

In Business
March 27, 2024


Pakistan Stock Exchange (PSX) on Tuesday continued its bullish momentum as it extended gains from the previous session, primarily fuelled by a surge in stock valuations in oil and banking sectors.

Though trading commenced with the intra-day low of 65,492.70 points, the KSE-100 index gradually climbed upwards later. The positive trajectory got support from different factors including surging global equities, stability of the Pakistani rupee amid robust foreign currency inflows, and elevated global crude oil prices.

Although certain stocks registered losses, the positive performance from fertiliser, banking and cement sectors aided the overall bullish sentiment. The market maintained its upward march for almost throughout the session and reached the intra-day high of 65,989.54 towards the end of trading.

Eventually, the KSE-100 index closed near the 66,000 level with gains of nearly 400 points. “Stocks closed higher, led by oil and banking shares on strong valuations,” said Ahsan Mehanti, MD of Arif Habib Corp.

“Surging global stocks, rupee stability amid foreign inflows and higher global crude oil prices played the role of catalysts in bullish close at the PSX.” At close, the benchmark KSE-100 index recorded an increase of 380.63 points, or 0.58%, and settled at 65,906.28.

Read PSX rises gradually in topsy-turvy week

Topline Securities, in its report, said that Tuesday’s trading session at the Pakistan stock market concluded at 65,906, marking a 0.58%, or 381-point, increase.

Contributing positively to the index were fertiliser, banking and cement sectors, with Fauji Fertiliser, Meezan Bank, United Bank, Lucky Cement, and Engro Corp collectively adding 305 points.

Conversely, Engro Fertilisers, Bank Alfalah and MCB Bank incurred losses totalling 51 points, it noted.

Arif Habib Limited (AHL), in its review, wrote that the PSX knocked on the 66,000 mark again, which had been tested in six sessions since the start of March. “Bias remains for an eventual breach and moves towards new highs,” it said.

“The index is currently looking poised to breach 66,000 this week and see accelerated gains,” AHL said, adding that 58 shares rose while 33 fell with Fauji Fertiliser (+4.31%), Meezan Bank (+3.62%) and United Bank (+1.39%) being the biggest contributors to the index gains.

Pakistan International Airlines surged 7.5% following the approval of its board for the restructuring and privatisation of the airline.

AHL said that FTSE would release the fixed income and equity country classification review of markets on Wednesday after the close of US markets where Pakistan was on the watch list for potential demotion, from secondary emerging to frontier market status. JS Global analyst Mubashir Anis Naviwala observed that the KSE-100 index saw a positive movement, gaining 381 points day-on-day to close at 65,906.

“Looking ahead, it may be wise for investors to consider a buy-on-dips strategy, especially focusing on banking, exploration and production, and technology sectors,” the analyst added.

Overall trading volumes increased to 303.7 million shares against Monday’s tally of 261.2 million. The value of shares traded during the day was Rs12.1 billion.

Shares of 336 companies were traded. Of these, 173 stocks closed higher, 144 dropped and 19 remained unchanged.

Pakistan International Airlines Corp was the volume leader with trading in 30.3 million shares, gaining Rs1.77 to close at Rs25.39. It was followed by Pakistan Telecommunication Company with 28.1 million shares, gaining Rs0.4 to close at Rs16.10 and the National Bank of Pakistan with 21.03 million shares, gaining Rs1.2 to close at Rs40.56.

Foreign investors were net buyers of shares worth Rs359.6 million, according to the NCCPL.

Published in The Express Tribune, March 27th, 2024.

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