Stocks close above 78k mark amid strong corporate earnings

KARACHI: Stocks closed higher for the second consecutive day on Friday regaining its position above the 78k mark amid strong corporate earnings.

The Pakistan Stock Exchange’s (PSX) benchmark KSE 100-share Index increased by 695.36 points or 0.89 per cent to 78,569.59 points against 77,874.22 points recorded in the last session. The highest index of the day remained at 78,823.14 points while the lowest level was recorded at 78,051.08 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed bullish led by cement, banking and oil scrips amid strong corporate earnings outlook.He said bullish global equities on easing recession fears, surging FX reserves, a drop in interbank rates, and imminent IMF board approval for EFF this month played a catalyst role in the bullish close.

The KSE-30 index increased by 236.17 points or 0.95 per cent to 25,178.4 points against 24,942.23 points.Traded shares decreased by 73 million shares to 420.405 million shares from 493.09 million shares. The trading value decreased to Rs20.72 billion from Rs25.846 billion. Market capital expanded to Rs10.49 trillion against Rs10.4 trillion. Of 446 companies active in the session, 226 closed in green, 156 in red and 64 remained unchanged.

Nabeel Haroon, an analyst at Topline Securities, said market largely traded in positive zone during the trading session, as the index gained 695 points to close at the 78,570 level (up by 0.89 per cent).

Major positive contribution to the index came from MARI, UBL, MCB, SYS and MEBL, as they cumulatively contributed 566 points to the index. The highest increase was recorded in Mari Petroleum Company Limited shares, which rose by Rs285.88 to Rs3,144.64 per share. This was followed by Unilever Pakistan Foods Limited, which increased by Rs145.94 to Rs17,945 per share. A significant decline was noted in Leiner Pak Gelatine Limited, which fell by Rs45.22 to Rs407.02 per share; Nestle Pakistan Limited followed it, which closed lower by Rs25 to Rs6,900 per share.

Brokerage Arif Habib Ltd stated that the KSE-100 index ended the week on a strong note, closing above the 78,000 level, marking a 0.42 per cent week-on-week gain.The index’s recovery above 78k is a positive sign for future upside, particularly against the week’s low of 77,000, it noted.

In sector news, the Pakistani government is set to review and terminate agreements with 15 independent power producers (IPPs) to help curb soaring energy costs, which saw Kapco decline by 3.48 per cent.

Additionally, FFBL announced the sale of 166.387 acres of land at Pindi Bhattian to the Fauji Foundation for Rs856 million, translating to Rs5.15 million per acre. This transaction is expected to result in a cash flow impact of Re0.66 per share and a gain of Re0.28 per share. The KSE-100’s ability to hold above its weekly support level bodes well for continued upward momentum in the coming sessions.

Kohinoor Spinning remained the volume leader with 64.789 million shares which closed higher by 82 paisas to Rs6.64 per share. Yousuf Weaving followed it with 24.857 million shares, which closed higher by 64 paisas to Rs4.34 per share.

Other significant turnover stocks included The Organic Meat, PIA Holding Company, WorldCall Telecom, Air Link Commun, Quice Food, Octopus Digital, JS Bank Ltd and TRG Pak Ltd. In the futures market, 323 companies recorded trading, of which 190 increased, 128 decreased and 5 remained unchanged.