PSX is making modest gains in terms of privatizations

KARACHI:

Positive momentum continued in the Pakistan Stock Exchange (PSX) on Friday on the back of an improved economic outlook as investors closely watched the government’s discussion on privatization of state-owned enterprises (SOEs).

The market was also driven by the uptrend in global equities and the government’s commitment to reduce electricity tariffs.

In the morning, trading started with strong buying and the KSE-100 index jumped almost 500 points by the afternoon. It hit an intraday high of 78,914.28, up 565 points.

However, profit-taking erased gains, sending the index to an intraday low of 78,439.62. The market rallied towards the close of trading where it recorded modest gains.

“Stocks closed higher as investors weighed government talks on privatization of state-owned enterprises, speculation of lower CPI inflation in August and the recent Moody’s rating upgrade,” said Ahsan Mehanti, MD of Arif Habib Corp.

“An uptrend in global equities, the government’s confirmation of a cut in electricity tariffs by next year and expectations of bridging the external funding gap were the key catalysts for the market’s strong close,” he said.

In late trade, the KSE-100 index registered a modest gain of 138.55 points, or 0.18%, to settle at 78,488.22.

Topline Securities, in its commentary, noted that the market traded largely in positive territory as the index rose to an intraday high of 564 points.

However, some profit-taking was seen in the closing hours when the stock market fell but still closed down 0.18% at 78,488, it said.

Major positive contributors to the index came from Engro Fertilisers, Millat Tractors, Fauji Fertiliser, National Bank and United Bank, which cumulatively added 239 points.

In contrast, Hub Power, Habib Bank, Bank AL Habib, Pakistan Petroleum and Bank Alfalah lost ground, weighing on the index by 141 points, Topline added.

Arif Habib Limited (AHL), in its report, noted that the KSE-100 index had a range-bound week, hovering between 78,000 and 79,000 points, but closed down by the end of the week.

On Friday, 47 stocks rose while 50 fell. The biggest contributors to the index came from Engro Fertilizers (+2.65%), Fauji Fertilizer (+1.82%) and Millat Tractors (+3.32%). Conversely, the biggest charges were Hub Power (-1.09%), Bank AL Habib (-1.88%) and Habib Bank (-1.28%), it said.

National Bank (+5.42%) continued to see strong demand following the resolution of its long-running pension dispute, prompting an increase in its “Dec 2025 target price to Rs 80.1”.

Following the upgrade of Pakistan’s credit rating by Moody’s earlier in the week, the ratings of five Pakistani banks were also upgraded, AHL added.

JS Global analyst Mohammed Waqar Iqbal said the PSX ended the week with modest gains, with the market remaining mostly in the green.

The index peaked at 78,914 (+565 points), but profit-taking at higher levels pared gains. Buying activity was mainly concentrated in fertilizers, oil and gas and banking stocks.

“Looking ahead, we recommend a buy-on-dips strategy with an emphasis on the technology, fertilizer, cement and oil and gas sectors,” the analyst added.

Total trading volume rose to 680.8 million shares compared with Thursday’s tally of 599.8 million. The value of shares traded during the day was Rs 21.2 billion.

Shares of 454 companies were traded. Of these, 214 stocks closed higher, 180 declined and 60 remained unchanged.

Hascol Petroleum was the volume leader with 63.1 million shares traded, gaining Rs 0.65 to close at Rs 7.90. It was followed by Kohinoor Spinning Mills with 44.6 million shares, gaining Rs 0.15 to close at Rs 11.84 and Symmetry Group with 38.7 million shares, gaining Rs 0.77 to close at Rs9.34.

Foreign investors were net buyers of shares worth Rs 565.4 million, according to NCCPL.