Stocks bounce back 1,205 points to new peak

Express Tribune

7 days ago

Foreign funds would divert their liquidity into buying Pakistan's stocks. This would merely increases prices of shares and be profitable for those who already hold stocks. PHOTO: FILE
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Following a retreat in the previous session, investor confidence returned to the Pakistan Stock Exchange (PSX) on Thursday as the benchmark KSE-100 index surged past the previous record, posting a gain of more than 1,200 points.
The upward trend was fuelled by positive economic signals and strengthened investor sentiment. In a landmark achievement, Pakistan witnessed highest-ever annual inflows of home remittances, which crossed $38 billion during fiscal year 2024-25.
This exceptional growth is largely attributed to effective policy initiatives and consistent efforts by the federal government along with the State Bank of Pakistan (SBP) to promote the use of official remittance channels.
During the session, the index swung between intra-day peak of 133,902 and intra-day low of 132,706. By the close of trading, the index stood at 133,782.35, marking an increase of 1,205.36 points, or 0.91%.
Stocks closed at a new all-time high amid speculation in the earnings season and falling longer-term yields of government bonds, which hinted at State Bank's policy easing, Arif Habib Corp MD Ahsan Mehanti commented.
Record remittances of $38.3 billion, a 4.67% increase in exports for FY25 and likely relief in industrial tariffs were the key catalysts for the record close at the PSX, he added.
JS Global analyst Muhammad Hasan Ather observed that the KSE-100 index surged 1,325 points to reach the intra-day high of 133,902 as investor sentiment turned bullish on the back of strong macroeconomic signals.
In addition, record high remittances and robust demand in recent government debt auctions drove renewed interest in the banking sector, marking a key inflection point for the market. With improving fundamentals and fiscal stability, the index appears poised to consolidate above the 130,000 mark, he said.
Arif Habib Limited (AHL) wrote in its report that stocks held the support zone at 132-133k during the current week, with the market hitting a low of 132.3k before resuming its advance.
Some 63 shares rose while 34 fell. Meezan Bank (3.17%), MCB Bank (2.59%) and United Bank (1.09%) contributed the most to index gains. Pakistan Services (-5.34%), Oil and Gas Development Company (-0.61%) and Pakistan State Oil (-1%) were the biggest drags, it said.
Among major news, Pakistan was seeking a valuation of at least $1 billion for PIA's Roosevelt Hotel in New York. In addition, Kohat Cement jumped 8.5% after approving the creation of a wholly owned subsidiary, Ultra Properties, to handle real estate development, marketing and rental operations.
Heading into the last session of the week, the KSE-100 was up 1.4%, with 134.1k being the level to watch for in Friday's session, AHL predicted.
Topline Securities, in its review, said that after a two-day breather, bulls roared back to life as the KSE-100 index surged 1,205 points (+0.91%).
The upbeat momentum was underpinned by investor optimism ahead of the corporate results season, set to kick off on Friday. The anticipation of strong earnings spurred broad-based buying across key sectors. In the textile sector, Nishat Mills Limited (NML) emerged as a standout performer. Topline maintained its "buy" stance on NML with a June 2026 target price of Rs225.
Overall trading volumes jumped to 941.7 million shares as compared to Wednesday's tally of 905.7 million. The value of shares traded was Rs36.1 billion. Shares of 479 companies were traded. Of these, 260 stocks closed higher, 195 dropped and 24 remained unchanged.
The Bank of Punjab was the volume leader with trading in 155.4 million shares, rising Rs1.14 to close at Rs13. It was followed by Kohinoor Spinning Mills with 55.1 million shares, gaining Rs0.24 to close at Rs6.89 and Hascol Petroleum with 33.3 million shares, up Rs0.61 to close at Rs11.81. Foreign investors sold shares worth Rs324 million, the National Clearing Company reported.