KSE-100 extends gain to close at fresh record high

The Pakistan Stock Exchange (PSX) maintained its merry run for the second consecutive day as its benchmark KSE-100 Index gained over 400 points to close at a fresh record high on Tuesday.

The KSE-100 started the session positive, hitting an intra-day high of 86,846.04, followed by late-session selling that trimmed some gains.

At close, the benchmark index settled at 86,466.58, up by 409.06 points or 0.48%.

“This positive movement was driven by institutional buying and better-than-expected corporate earnings,” brokerage house Topline Securities said.

SYS from the technology sector surged 7.41% after announcing its 3Q2024 results, reporting an EPS of Rs7.51, surpassing expectations, according to Topline.

K-Electric (KEL) led the market in trading volume with a notable 224 million shares traded.

“This was fuelled by material news, as NEPRA approved the generation tariff for all its power plants for the period after June 2023,” the brokerage house said.

The major contributors to the index’s rise were SYS, LUCK, HUBC, ATRL, and KEL, which collectively added 380 points, it added.

Another brokerage house Ismail Iqbal Securities said the benchmark index closed on a positive note, reaching an all time high at market close on Tuesday.

“The momentum was fuelled by the bullish momentum as investors took advantage of value buying opportunities, supported by easing inflation and improvements in macroeconomic indicators,” it said.

Market experts have been attributing the positive sentiment to improved indicators, including a current account surplus for September and a reduction in political uncertainty after approval of the 26th Constitutional Amendment Bill by the parliament.

“The momentum comes on the back of political clarity,” Sana Tawfik, Head of Research at Arif Habib Limited (AHL), told Business Recorder.

The corporate results were also in line with market expectations, Tawfik said.

“We expect CPI reading to clock in at 6.3% in October, whereas the market expects inflation reading in the range of 6.3-6.5%. This has strengthened calls for a more pronounced policy rate cut.”

On Monday, PSX witnessed a bullish trend and closed on a strong positive note with healthy gains. The benchmark KSE-100 Index surged by 807.42 points or 0.95% and crossed the 86,000 psychological level to close at 86,057.52 points.

Globally, Asian stocks turned lower and the dollar stood by multi-month peaks on Tuesday as a sharp sell-off in bonds and a jump in gold suggested investors are hunkering down ahead of the US election.

Benchmark 10-year Treasury yields rose 11 basis points overnight and a further 1 bp in early Asia trade to 4.19%.

Gold hit a record high just above $2,740 an ounce on Monday and traded at $2,725 early on Tuesday.

Japan’s Nikkei slid 1.1% in morning trade to hit its lowest since early October. MSCI’s broadest index of Asia-Pacific shares outside Japan fell 0.8%. Wall Street gauges edged down overnight and futures inched lower in Asia.

Meanwhile, the Pakistani rupee registered a marginal decline against the US dollar, depreciating 0.02% in the inter-bank market on Tuesday. At close, the currency settled at 277.74, a loss of Re0.05 against the greenback.

Volume on the all-share index jumped to 722.21 million from 474.95 million on Monday.

The value of shares rose to Rs25.02 billion from Rs19.66 billion in the previous session.

K-Electric Ltd was the volume leader with 224.20 million shares, followed by WorldCall Telecom with 30.20 million shares, and Fauji Foods Ltd with 26.10 million shares.

Shares of 451 companies were traded on Tuesday, of which 231 registered an increase, 149 recorded a fall, while 71 remained unchanged.