Stocks gain 492 points amid hopes for policy rate cut

KARACHI: Stocks witnessed a major recovery and rose by 492 points on Wednesday amid expectations of a cut in the key policy rate and hopes for a successful IMF programme.

The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 share index increased by 491.69 points or 0.63 per cent to 78,848.01 points against 78,356.32 points recorded in the last session. The highest index of the day remained at 78,890.79 points while the lowest level was recorded at 78,488.88 points.

Analyst Ahsan Mehanti at Arif Habib Corp said, “Stocks closed bullish amid speculations on rate cut in the SBP policy announcement on September 12 as CPI Inflation cooled down to 9.6 per cent for August 24.”

He said the prime minister’s assurance on government working on IMF terms to secure $7 billion Extended Fund Facility (EFF) and the finance minister’s affirmation on financing assurances at advanced stages; government plans for the strategic sale of blue-chip state-owned enterprises (SOEs); and surging exports, which increased 14per cent for July-Aug 2024, played a catalyst role in the bullish close.

The KSE-30 index increased by 193.46 points or 0.78 per cent to 25,012.32 points against 24,818.86 points.Traded shares surged by 533 million shares to 969.768 million shares from 436.672 million shares.

The trading value rose to Rs17.51 billion from Rs12.26 billion. Market capital expanded to Rs10.485 trillion against Rs10.43 trillion. Of 443 companies active in the session, 259 closed in green, 138 in red and 46 remained unchanged.

Maaz Mulla, an analyst at Topline Securities, said that the KSE-100 index rose by 491 points (0.63 per cent), closing at 78,848 after reaching an intraday high of 534 points.

“This positive momentum followed the finance minister’s remarks that the IMF’s $7 billion Extended Fund Facility approval is on track, with Pakistan nearing assurances on external financing,” he said.

Key stocks, including MARI, OGDC, EFERT, LUCK, and BAHL, drove the market’s rise, contributing 290 points to the index.

The highest increase was recorded in Mari Petroleum Company Limited, which rose by Rs130.69 to Rs3,641.42 per share, followed by Unilever Pakistan Foods Limited, which increased by Rs114.5 to Rs17,550 per share. A significant decline was noted in Nestle Pakistan Limited, which fell by Rs82.33 to Rs6,917.67 per share; PIA Holding Company Limited B followed it, which closed lower by Rs54.92 to Rs854.03 per share.

Analyst Mubashir Anis Naviwala said bullish activity was observed in the market, primarily driven by sideboard stocks. However, some activity was also witnessed in the oil and gas and banking sectors.

“Moving forward, we expect the market to experience range-bound activity, where any dips could be considered buying opportunities, with a focus on the oil and gas, fertilizer, cement and technology sectors,” he said.

WorldCall Telecom remained the volume leader with 234.64 million shares which closed higher by 16 paisas to Rs1.37 per share. Pervez Ahmed Co followed it with 48.69 million shares, which closed higher by 36 paisas to Rs1.44 per share.

Other significant turnover stocks included Kohinoor Spinning, Flying Cement, Symmetry Group Ltd, Amtex Limited, Pace (Pak) Ltd, Media Times Ltd, Hascol Petrol and Pak Int Bulk. In the futures market, 318 companies recorded trading, of which 241 increased, 73 decreased and 4 remained unchanged.