BACK

KSE-100 up 573 points amid upbeat data on current account

Our Correspondent
Tuesday, Jan 21, 2025

KARACHI: The Pakistan Stocks Exchange (PSX) started the week on a positive note, where the benchmark KSE-100 index closed higher by 573 points, as investors hope for a further cut in the policy rate this month and weigh current account surplus data.

The PSX’s benchmark KSE 100 Index increased by 572.73 points or 0.5 per cent to 115,844.82 points against 115,272.08 points recorded in the last session. The highest index of the day remained at 116,276.42 points, while the lowest level was recorded at 115,668.08 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks closed bullish in the earning season rally amid upbeat data on the $1.2 billion current account surplus and a 20 per cent surge in FDI to $1.33 billion for July-December 2024.”

He said that easing political risk, and speculations over likely progress in government-PTI negotiations for political accord played a catalyst role in a further surge at the PSX.

The KSE-30 index increased by 164.8 points or 0.45 per cent to 36,476.17 points against 36,311.37 points.

Traded shares increased by 126 million shares to 675.046 million shares from 549.584 million shares. The trading value rose to Rs37.533 billion from Rs35.931 billion. Market capital expanded to Rs14.319 trillion against Rs14.244 trillion. Of the 454 companies active in the session, 241 closed in green, 157 in red, and 56 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the bulls decisively regained control of the local bourse, propelling the index to an impressive intraday high of 1,004 points before closing at 115,844, marking a gain of 572.73 points or 0.5 percent.

“This upward momentum was fuelled by strengthened investor confidence, bolstered by political stability that eased prevailing uncertainties,” he said. “The anticipation of a potential rate cut in the upcoming monetary policy meeting, scheduled for January 27, 2025, further amplified positive market sentiment, driving broad-based optimism across key sectors.”

ENGROH, FFC, MEBL, SEARL and MLCF were key contributors to the day’s gains, collectively adding 449 points to the index. On the other hand, losses in MARI, PPL, SYS, PSO and BAFL pared gains by 182 points.

The highest increase was recorded in Hoechst Pakistan Limited, which rose by Rs166.92 to Rs2,986.68 per share, followed by Colgate-Palmolive (Pakistan) Limited, which increased by Rs23.90 to Rs1,515.49 per share. A significant decline was noted in Unilever Pakistan Foods Limited, which fell by Rs148.50 to Rs21,849.50 per share; Philip Morris (Pakistan) Limited followed it, which closed lower by Rs34.49 to Rs698.11 per share.

Brokerage Arif Habib Ltd stated the PSX started the week on a positive note, with the KSE-100 index moving beyond the upper end of its 112,000–115,500 range, setting the stage for further gains.

Maintaining the 115,000 level will be crucial in sustaining the market’s upward momentum, with expectations of further gains throughout the week.

Lotte Chemical remained the volume leader with 59.473 million shares, which closed higher by Rs1.89 to Rs23.23 per share. Bank Makramah, with 57.8 million shares, followed it, which closed higher by 70 paisas to Rs3.4 per share.

Other significant turnover stocks included WorldCall Telecom, Hascol Petrol, Dewan Motors, Hub Power Co., Citi Pharma Ltd, Maple Leaf, The Searle Company and Cnergyico PK. In the futures market, 298 companies recorded trading, 172 of which increased, 120 decreased and 6 remained unchanged.