Record high: bulls push KSE-100 beyond 69,500 with 1,203-point gain

Bullish momentum took the Pakistan Stock Exchange (PSX) to new heights as the benchmark KSE-100 settled at its highest-ever closing at 69,620 on Monday.

The index made gains throughout the trading session, however, both volume and value of shares traded declined on a day-to-day basis.

At close, the benchmark index settled at 69,619.98 level, an increase of 1,203.20 points or 1.76%.

“Today’s gain is the highest increase since 01 January, 2024,” said brokerage house Arif Habib Limited (AHL) in a note.

Buying was led by the index-heavy energy sector, with stocks of companies including OGDC, PPL, PSO, SSGC, and SNGPL settling in the positive.

Experts have attributed the recent stock rally to a decrease in inflation numbers, which clocked in at 20.68% YoY for March 2024, turning real interest rates positive for the first time in 38 months, and raising hopes for a policy rate cut by the central bank.

Furthermore, foreign investors and institutions injected additional liquidity through buying, supporting the market’s momentum.

“The market also remains bullish as PM Shehbaz Sharif is visiting Saudi Arabia, and there are hopes of inking some potential bilateral agreements,” Tahir Abbas, Head of Research at AHL, told Business Recorder.

“Also, the market is upbeat as the Finance Minister is planning to leave for Washington for the IMF/WB spring meeting, where he is expected to negotiate for the new programme, which is crucial for the long-term sustainability of Pakistan,” he added.

As per Capital Stake, a brokerage house, the prospect of Saudi investment in Reko Diq spurred investors’ interest in oil and gas stocks.

During the previous week, the bourse witnessed a bullish trend on the back of healthy buying by both local and foreign investors coupled with institutional support.

The benchmark KSE-100 index surged by 1,274.66 points on week-on-week basis, to close at 68,416.78 points.

Globally, Asian markets fluctuated Monday as traders weighed the chances of the Federal Reserve cutting interest rates this year after a forecast-busting US jobs report dented hopes for a first move in June.

Wall Street’s three main indexes rallied Friday on news that 303,000 jobs were created in the United States in March, with investors focusing on the positives for the economy instead of the monetary policy implications.

However, observers warned that the figures – which also showed unemployment falling and wage growth still strong – could prevent the Fed from cutting rates three times in 2024, as it has previously indicated.

Traders are now awaiting the release this week of minutes from the central bank’s most recent meeting, as well as the latest consumer price index reading.

Meanwhile, the Pakistani rupee remained largely stable against the US dollar in the inter-bank market on Monday. The local unit settled at 277.95 at close, down by Re0.02 against the greenback, as per the State Bank of Pakistan (SBP).

On the corporate front, the Board of Directors (BoD) of International Finance Corporation (IFC) approved debt financing of up to $400 million to Pakistan Telecommunication Company Limited (PTCL) after its acquisition of Telenor Pakistan (Private) Limited.

Moreover, Oil & Gas Development Company Limited (OGDCL) announced the discovery of tight gas at its exploratory well Nur West # 01, located in district Sujawal, Sindh.

Volume on the all-share index marginally decreased to 335.83 million from 388.75 million a session ago.

The value of shares decreased to Rs15.3 billion from Rs17.9 billion in the previous session.

PTCL was the volume leader with 33.7 million shares, followed by The Searle Company with 21.1 million shares, and WorldCall Telecom with 18.14 million shares.

Shares of 345 companies were traded on Monday, of which 203 registered an increase, 123 recorded a fall, while 19 remained unchanged.