Bank stocks, Pak-US deal propel PSX to record
Bulls once again took charge at the Pakistan Stock Exchange (PSX) on Monday as the benchmark KSE-100 index ended the trading session with a rise of 1,421 points, or 1.08%, settling at a new record high at 133,370.15.
The market enjoyed a strong rally throughout the day, fuelled by robust performance of bank stocks amid expectations of handsome earnings and dividend payouts for the June quarter, analysts commented.
Apart from that, Pakistan has reached a trade and tariffs deal with the US – a significant development in negotiations between the two countries. Optimism surrounding the deal supported the advancement of textile stocks during the day.
According to Ahsan Mehanti of Arif Habib Corp, stocks closed at a new all-time high in an earnings season rally on receding fears of US tariffs as a trade agreement had been reached, preventing the earlier anticipated 29% duties on exports to the US. Surging foreign exchange reserves, rupee stability and the proposed privatisation of state enterprises played the role of catalysts in record close at the PSX, he added.
In its review, Topline Securities commented that the KSE-100 index ended the trading session at 133,370, marking a gain of 1,421 points, or 1.08%. The rally continued throughout the day, with the index hitting intra-day high of 133,862, fuelled by strong performance of bank stocks amid expectations of robust earnings and dividend payouts for the June quarter. Textile stocks also advanced, likely supported by optimism about the tariff agreement with the US, it noted.
Major contributors to the index's upward movement included HBL, Fauji Fertiliser Company, Bank Alfalah, MCB Bank and Lucky Core Industries, which added 476 points. On the flip side, the index faced some pressure from negative contributions by Adamjee Insurance, Engro Fertilisers and Mari Petroleum, Topline added.
According to Arif Habib Limited (AHL), gains continued to accelerate at the PSX, where the KSE-100 closed above 133,000 points. Some 76 shares rose while 24 fell. Among the advancers, HBL (+3.67%), Fauji Fertiliser Company (+0.86%) and Bank Alfalah (+4.25%) contributed the most to index gains. On the other hand, Adamjee Insurance (-3.82%), Engro Fertilisers (-0.48%) and Mari Petroleum (-0.36%) were the biggest drags, the brokerage house said.
It pointed out that Pakistan and the United States have reached an agreement on a trade and tariffs framework, ahead of the July 9 deadline. This marks a significant development in the ongoing trade negotiations between the two nations. A formal announcement is expected only after the US concludes negotiations with other trade partners.
"The 130,000 level further strengthens its position as a support point against which gains should continue to accelerate," AHL stated. JS Global analyst Muhammad Hasan Ather commented that the KSE-100 index surged 1.4% to a record intra-day high of 133,862, driven by optimism about trade negotiations, macroeconomic stability and a strong corporate earnings outlook.
Falling inflation, strengthening forex reserves and capital inflows were enhancing investor confidence while higher taxes on alternative assets were redirecting capital into equities, he said. "With the earnings season ahead and technical indicators breaking new ground, we expect the bullish momentum to persist in the near term," the analyst added.
Overall trading volumes increased to 919.9 million shares compared with Friday's tally of 733.1 million. The value of shares traded was Rs45.3 billion. Shares of 479 companies were traded. Of these, 299 stocks closed higher, 155 fell and 25 remained unchanged.
Image Pakistan was the volume leader with trading in 48.1 million shares, gaining Rs3.08 to close at Rs36.32. It was followed by The Bank of Punjab with 42.5 million shares, rising Rs0.21 to close at Rs11.87 and WorldCall Telecom with 36.9 million shares, remaining unchanged at Rs1.55. Foreign investors sold shares worth Rs708.4 million, the National Clearing Company reported.
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