Pakistan Stock Exchange Extends Bullish Momentum

Pakistan Stock Exchange (PSX) continued its bullish run on Wednesday as the KSE-100 index surged by over 250 points, driven by strong corporate earnings and positive economic developments, restoring investor confidence across multiple sectors.

Market Performance and Key Drivers
The session opened on a positive note, with the KSE-100 index reaching an intra-day high of 114,030 points by midday. Investors reacted favorably to:

• A 56% YoY increase in Foreign Direct Investment (FDI) to $1.52 billion in July-January FY25.
• Saudi oil facility renewal for deferred payment, expected to stabilize the Pakistani Rupee.
• Strong export data, further boosting market sentiment.

Despite heavy selling pressure in the afternoon, which pushed the index to an intra-day low of 113,060, the market rebounded to close at 113,342.44, registering a gain of 253.96 points (0.22%).

Market Analysts’ Insights
Ahsan Mehanti of Arif Habib Corp highlighted that investor optimism was fueled by:

• Government’s privatisation initiatives for state-owned enterprises.
• World Bank’s $40 billion investment pledge.
• Higher crude oil prices supporting the energy sector.

Topline Securities noted that the bullish trend was driven by better-than-expected corporate results, bolstering investor confidence and prompting fresh buying across various sectors.

Arif Habib Limited (AHL) reported, “Our weekly objective of 113.5k was achieved, with the intra-day high at 114k.”

Sector-Wise Performance & Major Movers
Among 66 gainers and 28 losers, key contributors to index gains included:

• Fauji Fertiliser (+1.18%)
• Bank AL Habib (+2.84%)
• Millat Tractors (+4.31%)

On the flip side, the biggest index drags were:

• United Bank (-4.65%)
• Lucky Cement (-3.94%)
• Hub Power (-1.42%)

Company Earnings Announcements
Several major companies reported strong earnings:

• United Bank (UBL) posted EPS of Rs61.12 (+36% YoY) and dividend per share of Rs44.
• Habib Bank (HBL) announced EPS of Rs39.85 (+1% YoY) and dividend per share of Rs16.25.
• DG Khan Cement (DGKC) declared EPS of Rs8.42 for 1HFY25 (+244% YoY).

Additionally, the finance ministry’s plan to reduce the tax on banks to 42% by 2027 also contributed to market optimism.

Trading Volume and Foreign Activity

• Total volume: 667.7 million shares (up from 545 million on Tuesday).
• Top volume leaders:
  • K-Electric (180.9 million shares, up Rs0.65 to Rs4.88).
  • Bank of Punjab (53.8 million shares, down Rs0.29 to Rs12.94).
  • Fauji Cement (38.1 million shares, up Rs1.84 to Rs40.55).
• Foreign investors sold shares worth Rs454.3 million, as reported by the NCCPL.