KARACHI:
Despite enduring a lackluster session, the Pakistan Stock Exchange (PSX) closed higher on Tuesday on speculation ahead of the announcement of the federal budget for 2024-25 in the first week of June.
The KSE-100 fell to an intraday low of 74,958.09 points in the morning in the absence of major positives. Later, it gradually rose along with small fluctuations.
The rally was fueled by a strong corporate earnings outlook and an upbeat World Bank forecast that pegged inflation in Pakistan at 15% for FY25.
Additionally, the current account deficit at just 0.6% of gross domestic product (GDP), the stability of the rupee and foreign investment inflows also helped the market grow.
As a result, the index crossed the critical 75,000 mark, reaching its intraday high of 75,482.46 points. It closed above the 75,000 mark with modest gains.
“Stocks closed higher on speculation ahead of the 25th federal budget due on June 7,” said Ahsan Mehanti, MD of Arif Habib Corp.
Strong earnings outlook, the World Bank’s bullish forecast of 15% inflation for 25 years, current account deficit at 0.6% of GDP, rupee stability and foreign inflows played a catalyst role in the higher close in PSX.
In late trade, the KSE-100 was up 122.77 points, or 0.16%, at 75,206.77.
Topline Securities, in its report, commented that the KSE-100 index had a mixed session, hitting an intraday high of 398 points and an intraday low of 125 points. It closed at 75.207, up 0.16%.
“The federal government is set to present the budget for the next fiscal year on June 7, 2024 in the National Assembly,” it said.
Positive contributors to the index were Meezan Bank, Bank AL Habib, United Bank, Service Industries and Pakgen Power, which added a total of 301 points.
On the other hand, Dawood Hercules Corp, Pakistan Oilfields, Fauji Fertiliser, Thal Limited and Oil and Gas Development Co shed 180 points from the index, Topline added.
Arif Habib Limited (AHL), in its review, said, “The KSE-100 continues to hold the 75,000 level, as does the KSE-30 at 24,000, above which the two benchmarks have a positive short-term outlook.”
Meezan Bank (+4.19%), Bank Alfalah (+2.09%) and United Bank (+1.53%) were the biggest contributors to the index’s gains, it said, adding that Dawood Hercules (- 3.9%), Pakistan Oilfields (-2.08). %) and Fauji Fertilizer (-1.02%) were the biggest burdens.
“PSX will gradually improve safety switches by 0.5% on a fortnightly basis until they reach 10% from the current 7.5%,” AHL added.
JS Global analyst Mohammed Waqar Iqbal said the KSE-100 closed up 123 points at 75,207. “Going forward, the market is expected to maintain the upward momentum,” the analyst added.
Total trading volume rose to 462.3 million shares from Monday’s 375.4 million. The value of shares traded during the day was Rs 15.9 billion.
Shares of 381 companies were traded. Of these, 174 stocks closed higher, 184 declined and 23 remained unchanged.
K-Electric was the volume leader with 40.9 million shares traded, gaining Rs 0.17 to close at Rs 4.84. It was followed by Dewan Cement with 38.5 million shares, gaining Rs 0.92 to close at Rs 10.80 and Symmetry Group with 32.85 million shares, gaining Rs 1 to close at Rs4.94.
Foreign investors were net sellers of shares worth Rs 4.34 billion, according to NCCPL.
Published in The Express Tribune, May 22n.d2024.
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