Stocks up 200 points as investors engage in buying in oversold market

KARACHI: Stocks recovered slightly and closed higher on Wednesday, as investors engaged in buying in the oversold market. The finance minister’s affirmation on SOEs privatization also boosted sentiment ahead of the federal budget.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share Index increased by 207.94 points or 0.29 per cent to 72,797.43 points against 72,589.49 points recorded in the last session. The highest index of the day remained at 73,169.00 points while the lowest level was recorded at 72,464.24 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks showed recovery after FM affirmation on SOEs privatization to be pursued vigorously, plan to negotiate China debt restructuring, and IMF talks in the right direction to stabilize the economy.”

He said the proposal for a Rs18.5trn budget for FY25, lower Kibor rates after the SBP cut policy rates and speculations on capital market proposals for FY25 played a role in the bullish close.

The KSE-30 index increased by 76.44 points or 0.33 per cent to 23,213.31 points against 23,136.87 points in the previous session.

Traded shares dropped by 79 million shares to 293.083 million shares from 372.538 million shares. The trading value decreased to Rs10.541 billion from Rs11.650 billion. Market capital expanded to Rs9.783 trillion against Rs9.754 trillion. Of 435 companies active in the session, 232 closed in the green, 130 in the red and 73 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said equities began the day positively, with the KSE-100 index reaching an intraday high of 73,169 points (+579 points; up 0.80 per cent) and an intraday low of 72,464 (-125 points; down by 0.17 per cent) to close at the 72,797 level (up by 207 points).

The market rebounded after two negative sessions, where PPL, SYS, Engro, POL and PSO collectively contributed +139 to the positive index and on the flipside NBP, BAFL, COLG, LUCK and HMB contributed -110 points to the declining index.

The highest increase was recorded in Pakistan Engineering Company Limited shares, which rose by Rs49.85 to Rs689.95 per share, followed by Sapphire Textile Mills Limited, which increased by Rs24.0 to Rs1,324.0 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs75.0 to Rs18,050.0 per share, followed by PIA Holding Company Limited B, which closed lower by Rs34.43 to Rs510.0 per share.

Brokerage Arif Habib Ltd stated the market exhibited a cautious tone, reflecting investor uncertainty ahead of potential fiscal policy shifts.

Notable performers included Airlink Communications (AIRLINK) and Netsol Technologies (NETSOL), both of which surged by 6.23 per cent and 6.22 per cent respectively. This uptick was fuelled by news that the upcoming budget will likely include measures to protect and support the IT sector, boosting investor confidence in technology stocks.As the market braces for the budget announcement, clarity is expected to emerge, ideally with the market stabilising around the 70,000 level. Investors remain on edge, hoping for fiscal policies that will spur economic growth and market stability.

K-Electric Ltd. remained the volume leader with 28.444 million shares which closed higher by 14 paisas to Rs4.64 per share. PIA Holding Company followed it with 27.442 million shares, which closed higher by 76 paisas to Rs12.75 per share.

Other significant turnover stocks included WorldCall Telecom, Pervez Ahmed Co, Cnergyico PK, Cres. Star Ins., Kohinoor Spining, Air Link Commun, Dewan Motors and Netsol Tech.

In the futures market, 311 companies recorded trading, of which 183 increased, 116 decreased and 12 remained unchanged.