Stocks surge to all-time highs on IMF programme, privatisation drive

Stocks soared past the 67,000-point mark, setting a fresh all-time high on Thursday as the bullish momentum was fueled by the progress on the IMF’s new bailout program and the privatization of state-owned enterprises, dealers said.

The Pakistan Stock Exchange's (PSX) benchmark KSE 100-share Index gained 594.34 points or 0.89 percent to close at 67,142.12 points. The highest index of the day remained at 67,246.03 points while the lowest level was recorded at 66,690.94 points. The KSE-30 index increased by 175.14 points or 0.80 percent to 22,090.00 points.

“Stocks closed all-time high after FTSE maintains Pakistan equities secondary emerging markets status likely to resume passive stock funds foreign inflows amid stable government," analyst Ahsan Mehanti at Arif Habib Corp, said.

said the government’s ongoing discussions regarding the privatisation of ailing state-owned enterprises (SOEs) and the approval of PIA’s Rs268 billion debt restructuring played a pivotal role in the bullish market sentiment. "Additionally, the stability of the rupee following the Pak-IMF Staff-Level Agreement (SLA) in the final review further contributed to the positive outlook."

Traded shares increased by 67 million shares to 421.118 million shares from 354.597 million shares. The trading value rose to Rs16.159 billion from Rs11.884 billion. Market capital expanded to Rs9.430 trillion against Rs9.346 trillion. Of 352 companies active in the session, 212 closed in green, 111 in red and 29 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the market optimism is buoyed by the reform agenda, alongside anticipation for a forthcoming IMF program, fostering a favourable market outlook.

“The SIFC remains steadfast in its commitment to reform, notably through the privatisation of PIA and other state-owned entities. To drive this agenda forward, SIFC is convening a three-day meeting with the newly appointed Executive Committee, under the leadership of Prime Minister Shehbaz Sharif,” Mulla said.

"Investors strategically augmented their equity portfolios by acquiring blue-chip stocks across diverse sectors."

Notably, the power, banking, and fertilizer sectors positively influenced the index, with BAHL, ENGRO, MCB, PPL, and LUCK collectively contributing 208 points. Conversely, profit-taking was observed in SYS, ABL, and SRVI, resulting in a cumulative loss of 31 points.

The highest increase was recorded in Rafhan Maize Products Company Limited shares, which rose by Rs125 to Rs8,175 per share, followed by Bata Pakistan Limited, which increased by Rs58 to Rs1,739 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs600 to Rs21,000 per share, followed by Nestle Pakistan Limited, which closed lower by Rs34.67 to Rs7,600.33 per share.

Brokerage Arif Habib Ltd stated that the benchmark index has reached a significant milestone by surpassing the 67,000 points mark, setting new all-time highs and reflecting the positive sentiment in the market.

In other developments, FTSE has retained Pakistan on its watch list as part of its March '24 Interim Update. The country is scheduled for assessment against the minimum Investable Market Cap and Securities Count exit level as of the close of June 28, 2024, with the result expected to be announced by July 5, 2024. This decision will have implications for Pakistan's classification in the global equity market landscape, it stated.

With the index now breaching the 67,000 milestone, market analysts anticipate continued upward momentum, with expectations for the index to advance towards the 70,000 level in the near term.

PTCL remained the volume leader with 55.715 million shares which closed higher by Rs1.11 to Rs18.42 per share. Lotte Chemical followed it with 27.228 million shares, which closed higher by 3 paisas to Rs19.56 per share.

Other significant turnover stocks included Telecard Limited, WorldCall Telecom, TPL Properties, Fauji Fert. XD, K-Electric Ltd., The Organic Meat, Air Link Commun and Hascol Petrol. In Future Market, 321 companies recorded trading, of which 211 increased, 106 decreased and 4 remained unchanged.