KARACHI:
The Pakistan Stock Exchange (PSX) closed at an all-time high on Wednesday as sustained buying, fuelled by improving economic indicators and market confidence, pushed the benchmark KSE-100 index sharply higher. The index soared 1,226.39 points, or 0.81%, to settle at 152,201.88 by the end of the session.
Momentum remained robust throughout the day, where the index climbed 1,830 points to the intra-day peak of 152,805, while the day’s low stood at 151,320. A big boost to the index came from the power generation & distribution sector, which added 411 points.
Talking to The Express Tribune, AKD Securities Director Research Mohammed Awais Ashraf commented that encouraging corporate results along with higher sales of fertiliser, oil and cement in August as well as improvement in the country’s macroeconomic conditions overshadowed concerns arising from floods and above-average rainfall.
Among individual stocks, Hub Power contributed the most to the index due to a surprisingly high payout. Overall, energy stocks were in the limelight on news of circular debt settlement, he said.
Ashraf expected the momentum to continue, aided by the room for further monetary easing on the back of lower inflation. However, economic losses from floods pose challenges.
Topline Securities mentioned in its review that bulls kept on marching firmly as the benchmark index surged to the intra-day high of 1,829 points before settling at 152,202, up 1,226 points (+0.81%).
Investor sentiment remained upbeat, largely driven by strong performance by different sectors. Cement companies were in the spotlight as they reported impressive sales. Industry dispatches rose 12% year-on-year (YoY) in August, reviving optimism across the board.
Similarly, the fertiliser sector drew heavy participation as urea sales spiked to 816,000 tons in August, up 46% YoY and 34% month-on-month. The sector benefited from aggressive discounting by select manufacturers and potential dealer pre-buying ahead of the anticipated partial rollback in September, it said.
Hub Power announced 4QFY25 results, posting earnings per share of Rs9.16 and declaring a dividend of Rs10/share, higher than market expectations that took the FY25 payout to Rs15/share.
Major support to the index came from Hub Power, Fauji Fertiliser, Oil and Gas Development Company, Mari Petroleum and Pakistan Petroleum, which together added 788 points, Topline wrote.
KTrade Securities observed that investor sentiment remained broadly positive, with strong performance by power, fertiliser, oil & gas and cement sectors. However, the highlight of the day was Hub Power, which gained 8.12% on the back of better-than-expected results and enhanced payout.
The ongoing floods have raised concerns among prudent investors over potential economic disruption, inflationary pressure and infrastructure damage, though the PSX continues to show resilience, KTrade said.
Arif Habib Limited (AHL) wrote in its report that the index hit the weekly target of 151.2k and reached the day’s high at 152.8k.
Some 55 shares rose while 44 fell with Hub Power (+8.12%), Fauji Fertiliser (+1.46%) and OGDC (+1.4%) contributing the most to index gains. Conversely, Bank AL Habib (-0.78%), Bank Alfalah (-1.46%) and Meezan Bank (-0.36%) were the biggest drags, it said.
AHL mentioned that the State Bank had supported the government’s proposal of virtual assets and would withdraw its warning against crypto trading once an authority was set up and a law came into force.
Overall trading volumes dropped to 1.04 billion shares compared with Tuesday’s tally of 1.1 billion. Traded value stood at Rs51.3 billion.
Shares of 477 companies were traded. Of these, 242 rose, 204 fell and 31 remained unchanged.
Pace (Pakistan) led the volumes with trading in 89.3 million shares, gaining Rs0.03 to close at Rs6.95. It was followed by Fauji Foods with 73.4 million shares, rising Rs1.11 to close at Rs18.15 and The Bank of Punjab with 51.6 million shares, losing Rs0.21 to close at Rs17.37. Foreign investors sold shares worth Rs122 million, the National Clearing Company reported.
