PSX Maintains Bullish Trend as KSE-100 Crosses 94,000 Points

The Pakistan Stock Exchange (PSX) continued its robust rally on Thursday, with the KSE-100 index surpassing the 94,000-point mark during intraday trading. This surge reflects growing investor confidence, driven by economic stability and positive market sentiment towards blue-chip stocks. The day began with a strong 547-point surge, pushing the index to 93,903 points.

As the trading session continued, the market momentum gained strength, reaching a high of 94,217 points, marking a peak increase of 816 points by noon. The KSE-100 index sustained this upward trend, ultimately recording a significant gain of 799 points to reach 94,154 points by midday.

This rally follows a strong start to the week, as the PSX has been experiencing a bullish trend due to favorable economic conditions and declining interest rates. On Wednesday, the market entered a consolidation phase, closing with a modest 131-point gain, primarily driven by investor interest in second and third-tier stocks.

According to Ahsan Mehanti, Managing Director of Arif Habib Corporation, “Stocks showed resilience due to strong valuations in mid-tier shares and positive data on car sales, which rose 112% year-on-year in October. Additionally, the Federal Board of Revenue’s assurance to the IMF of no mini-budget bolstered investor confidence.”

Mid-Week Market Highlights

On Wednesday, the KSE-100 index fluctuated between a high of 93,804 points and a low of 92,943 points, before closing with a gain of 130.86 points, settling at 93,355.43. Trading volume remained robust, with over 806 million shares traded, totaling Rs31 billion in value. Notably, consistent buying by mutual funds helped support the index’s recent gains, highlighting investors’ confidence in the market’s growth potential.

Key Sector Performances

Topline Securities noted that the market saw strong contributions from the oil, cement, and pharmaceutical sectors, particularly through stocks like Mari Petroleum, Lucky Cement, and The Searle Company. These stocks collectively added 461 points to the index. Conversely, profit-taking was observed in Oil and Gas Development Company, Fauji Fertiliser Company, and Meezan Bank, leading to a combined loss of 213 points.

The KSE-100 index’s bullish performance has been fueled by key catalysts, including a stable rupee, declining bank lending rates, and optimism surrounding economic reforms. Top contributors to the rally included notable names in the oil and gas sector, pharmaceuticals, and cement, indicating sectoral rotation based on attractive valuations and favorable economic conditions.

Economic Factors Influencing the Market

The PSX’s rally can be attributed to a mix of positive economic indicators, such as the upbeat data on car sales, which surged by 112% year-on-year in October, and assurances from the FBR about dropping contingency measures for a mini-budget. This news contributed to the optimism among investors, signaling an environment conducive to market stability and growth.

Additionally, foreign interest in Pakistani stocks has been rekindled following the MSCI’s revision of Pakistan’s standard index weight to 4.4%, boosting the appeal of PSX-listed securities in global markets. However, some foreign selling was observed on Wednesday, with investors offloading a net Rs1.39 billion in shares, according to NCCPL data.

Corporate Developments

In corporate news, Bank Alfalah withdrew its offer for Samba Bank after Saudi National Bank decided not to sell its 84.51% stake. Meanwhile, Rousch Power announced a negotiated settlement to end its power purchase agreement, marking a notable corporate decision as the company seeks new directions.

Among volume leaders, WorldCall Telecom saw trading in 43.3 million shares, closing at Rs1.26. Waves Home Appliances and Pakistan Refinery also posted high trading volumes, gaining 11% and remaining steady, respectively.

Outlook

Analysts remain optimistic about the PSX’s near-term prospects, recommending a “buy-on-dips” strategy, particularly in the oil, pharmaceutical, and fertiliser sectors. JS Global’s Mubashir Anis Naviwala noted, “The KSE-100 index’s recent consolidation has provided a stable base around the 92,000-94,000 range, signaling potential for further gains as investors look towards undervalued sectors.”

Moving forward, the PSX is expected to maintain its positive momentum, supported by continued interest in blue-chip stocks and key economic indicators. As long as global market trends and domestic policies remain favorable, the PSX could continue to see strong growth in the coming weeks.