The KSE-100 index of the Pakistan Stock Exchange (PSX) gained 1,618.21 points during intraday trade on Wednesday, reflecting an increase of 1.41%, as investor optimism fueled the trading session.
The benchmark index is currently at 116,745.11, up significantly from the previous close of 115,126.90. The index touched a high of 116,993.42 and a low of 114,719.89 in the day’s trade so far.
A total of 289.96 million shares were traded, with a market value of Rs 18.91 billion, as investors responded positively to favorable market conditions.
As the end of the year approaches, PSX sees a big boost.
The Pakistan Stock Exchange (PSX) experienced an extraordinary rally on Monday as the year-end drew to a close, with the KSE-100 index gaining 3,908 points or 3.5 percent.
The rally was fueled by investors’ hopes that the rationalization of government spending and the potential for a single-digit policy rate coupled with expectations of continued economic reforms. The positive sentiment was further supported by a strengthening rupee, rising exports and falling lending rates.
During the day, the KSE-100 index hit an intraday high of 4,071 points, before settling at 115,259 and returning to the upper end of its current range. The volume reached more than 1 billion shares while the total value reached 41 billion rupees. Arif Habib Corporation’s Ahsan Mahanti commented that stocks showed a massive rally before year-end, led by activity across the board, as investors saw the finance minister’s signal as a possible single digit. Weighed on the policy rate, rationality of government spending and economics. Reforms
He added that a stronger rupee, rising exports and falling lending rates were the catalysts for the PSX’s close to bullish. At the close of trading, the benchmark KSE-100 index registered a gain of 3,907.82 points or 3.51 percent to close at 115,259.
In its market review, Topline Securities commented that the PSX was bullish, with the KSE-100 index hitting an intraday high of 4,071 points and an impressive one-day gain. The upward momentum was fueled by optimism surrounding an expected increase in equity fund allocations by domestic institutions ahead of the new year, the brokerage house noted. Adding further stimulus was a statement from the finance minister over the weekend, suggesting a possible single-digit cut in interest rates.
While the final decision was to be taken by the Monetary Policy Committee, the minister’s remarks boosted market confidence and optimism about the economic outlook. Topline said the main contributors to the index’s rise were HBL, Dawood Hercules Corporation, MCB Bank, Engro Corporation and Mari Petroleum, which added a total of 1,265 points.
Arif Habib Limited (AHL) noted in its report that the week started on a very strong note, with the KSE-100 closing at the upper end of its current range with a gain of 3.51%.
Some 87 stocks rose while 12 fell, with HBL (+9.81%), Dawood Hercules (+10%) and MCB Bank (+6.83%) contributing the most to the index’s gains. On the other hand, Fuji Fertilizer Company (-0.62%), TRG Pakistan (-4.21%) and Colgate-Palmolive (-1.13%) were the biggest index drags, AHL said.
It added that the federal cabinet has approved an ordinance revising the tax structure of banks. According to media reports, the new policy eliminates ADR-related tax (10-16%) on income from government securities. At the same time, the ordinance raises the corporate tax rate for banks.
Additionally, the National Accounts Committee released economic growth figures for the first quarter of FY2024-25 and revised rates for FY24. AHL said that in 1QFY25, the growth rate stood at 0.92% year-on-year while for FY24 the growth rate was slightly lowered to 2.50% from 2.52%. JS Global analyst Mohammad Hasan Athar said the KSE-100’s rise was due to investors expecting interest rates to drop to single digits soon.
He said the market was driven by year-end portfolio rebalancing and futures rollover of around Rs 55 billion. Overall trading volume rose to 1.06 billion shares, compared with Friday’s 815.9 million. Shares of 465 companies were traded. Out of which 333 companies had an increase in their share prices, 84 companies had a decrease in their prices and 48 were stable.
Cnergyico PK was the volume leader with 125.6 million shares traded, up Rs 0.92 to close at Rs 7.44. It was followed by World Call Telecom, which traded 111.5 million shares, up Rs 0.12 to close at Rs 1.83 and The Bank of Punjab with 84.2 million shares, up Rs 0.99 to close at Rs 10.47.
During the day, foreign investors sold shares worth 178.5 million rupees, the National Clearing Company of Pakistan reported.