Khashif Talks Unlock Knowledge & Explore with Khashif Talks!
The Pakistan Stock Exchange (PSX) rallied to a new all-time high of 93,648 points, propelled by a surge in blue-chip stocks. Investor optimism surged on news of impending privatisation of state-owned enterprises (SOEs) and foreign interest from the MSCI’s recent index weight adjustment for Pakistan.
A stable rupee and declining lending rates, influenced by falling government bond yields, further fueled buying activity.
“Stocks reached a new all-time high, led by blue chips, on the IMF’s calls for privatisation of SOEs and anticipated foreign interest following the MSCI index weight increase to 4.4%,” noted Ahsan Mehanti, Managing Director of Arif Habib Corp.
At the market close, the KSE-100 index was up by 356.64 points, or 0.38%, reaching 93,648.33.
Market Dynamics and Sector Performance
Topline Securities reported a positive momentum with the KSE-100 index peaking at 94,020 points and reaching a low of 93,319 during the day, as investors were drawn to lower valuations in the pharmaceutical sector.
Key contributors to the index included Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Abbott Laboratories, The Searle Company, and GlaxoSmithKline, collectively adding 399 points. Trading remained strong with 815 million shares worth Rs37 billion exchanged.
According to AHL, exploration and production (E&P) stocks and Sui companies performed strongly, with the KSE-100 index rising 0.4% day-on-day. Pharmaceutical stocks also saw gains, with several reaching their daily price limits.
Noteworthy movements included Sui Southern Gas Company (+10%) and Pak Elektron (+8%), with Pak Elektron hitting a record trading volume of 78 million shares. Attock Refinery, down 4.04%, clarified that recent sale rumors were unfounded, briefly affecting its share price.
Investor Sentiment and Key Takeaways
JS Global analyst Mubashir Anis Naviwala observed high volatility, as the PSX hit an intra-day peak of 94,020 before profit-taking pulled it down to 93,319. Despite fluctuations, strong interest in E&P and pharma stocks sustained positive investor sentiment, closing the day with a 357-point gain at 93,648.
“Looking ahead, we recommend a buy-on-dips approach with a focus on E&P, pharmaceutical, and fertiliser sectors, which hold potential upside,” noted Naviwala.
Trading volumes rose to 815.2 million shares, up from Friday’s 763.3 million, with a total value of Rs37.3 billion. Shares of 454 companies traded, with 227 gaining, 184 losing, and 43 remaining unchanged.
Cnergyico PK led in volume with 98.6 million shares traded, gaining Rs0.4 to close at Rs4.52. Pak Elektron followed with 78.1 million shares, up Rs2.15 to close at Rs29.01, and K-Electric had 70.2 million shares, rising Rs0.14 to close at Rs4.98.
