Stocks wrap up on economic positivity
The Pakistan Stock Exchange (PSX) ended the week on a strong footing, with the KSE-100 Index climbing past the 134,000 level during Friday's session.
The benchmark index moved within a range, touching an intraday high of 134,931.96 and a low of 134,130.41. It eventually settled at 134,299.77, gaining 517.42 points, or 0.39%, by the close.
Investor confidence was evident in broad-based buying, particularly in sectors such as auto assemblers, power generation, refineries, and oil and gas marketing.
Despite some weakness in select financial stocks, the broader trend stayed upbeat, supported by consistent interest in key cyclical and energy-related names.
Arif Habib Limited reported that the KSE-100 index recorded another solid week of gains, rising by 1.8% week-on-week.
On Friday, 55 stocks advanced while 45 declined. The largest contributors to the index gains were United Bank (2.4%), Hub Power (1.6%), and Millat Tractors (2.76%). On the other hand, Bank Al Habib (-3.3%), MCB Bank (-1.04%), and Habib Bank (-1.22%) were biggest drags on the index.
In corporate news, United Bank reported earnings for the first half of FY25 with earnings per share of 26.07, marking a 99% year-on-year increase. The company also announced a dividend of 19 per share. While earnings were in line with expectations, the payout exceeded forecasts.
Looking ahead, declines below the 132,000 level are expected to find support, while 136,000 remains the key upside target, AHL wrote.
KTrade Securities wrote in its market wrap that stocks closed at an all-time high, with the benchmark KSE-100 index gaining 517 points (+0.4% DoD) to settle at 134,299.
The rally was driven by strength in the cement, auto, and power sectors, with notable contributions coming from UBL, HUBC, MTL, KTML, PSO, and BWCL. Investor sentiment remained bullish, as reflected in a surge in trading volumes to 764 million shares, it added.
Overall trading volume decreased to 765 million shares as compared to Thursday's tally of 941.8 million. The value of shares traded was Rs40.1 billion. Shares of 477 companies were traded. Of these, 220 stocks closed higher, 228 dropped and 29 remained unchanged.
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Express Tribune
19 minutes ago
- Express Tribune
New era of prosperity in sight
Policymakers are expected to continue improvements on tax collection side to widen the tax net by signalling reduction in corporate and salary tax by 1% per year for the next 10 years and by reducing industrial energy tariffs. photo: file Listen to article Pakistan has long awaited this moment of certainty, optimism, and stability. The broader KSE-100 index of the Pakistan Stock Exchange (PSX) has surged to historical levels, crossing 134,000, and remains an attractive proposition. Just a few years ago, many had written Pakistan off, fearing imminent default, while even the most optimistic analysts couldn't foresee the remarkable transformation now unfolding. Negative voices once filled the airwaves, forecasting hyperinflation, currency crises, and social upheaval – yet today, the story has drastically changed. Amidst shifting geopolitical dynamics, Pakistan is finding its footing. A decade ago, the Belt and Road Initiative (BRI) promised $50 billion in investments, including a significant portion for the China-Pakistan Economic Corridor (CPEC). While this vision seemed ambitious at the time, the country now stands poised to reap the benefits of this foresight. The last decade saw its share of political upheavals, civil-military tensions and external conflicts. Today, however, Pakistan is forging stronger ties regionally and globally. Diplomatic relationships with Afghanistan, Iran and the Arab world have strengthened, while Pakistan's growing military capabilities and alignment with China signal a shifting power balance in the region. New optimism awakens The current government has proven itself adept at fostering diplomatic and economic stability. Ties with China have been cemented, and Pakistan's renewed bond with Iran, coupled with its strengthened relations with Saudi Arabia, Turkey, Azerbaijan, and Uzbekistan, all signal the dawn of a new era. The United States, too, appears to be softening its stance, following Pakistan's nomination of the US president for the Nobel Peace Prize and the army chief's recent visit to Washington. These developments have restored investor confidence, and Pakistan now stands on the cusp of a golden opportunity for economic growth. Interest rates have halved from 22% to 11% in recent months, while the currency has stabilised and foreign exchange reserves are climbing to multi-year highs. The country is now preparing to re-enter global capital markets with Panda bonds, while global bond prices have risen sharply, reflecting the reduced risk of default. As protectionist policies soften and industrial incentives increase, Pakistan is positioning itself as an attractive destination for foreign investment in mining, agriculture, IT, and tourism. Road ahead for economy Fiscal tightening has become a hallmark of Pakistan's recent economic strategy, with the government reducing its fiscal deficit and cutting debt levels over three consecutive years. These efforts are starting to bear fruit, though changes in the tax code have led to higher taxes on income from fixed income instruments, limiting returns to a meagre 7-8%. Despite this, investors are flocking to the KSE-100, with nearly $50 million pouring into equities, driven by the potential for strong returns in blue-chip companies. Investors are advised to research the companies they wish to invest in by reading the financial reports, attending analyst briefings, assessing the management style carefully, and evaluating the tradability of stocks while considering their investment horizon. Identifying sectors of interest, such as banks, mining, acquisitions, chemicals, the revival of the auto sector, and electric two-wheelers, can be lucrative. However, it is advisable to maintain a portfolio of 6-12 stocks that you are comfortable with, ensuring you can sleep well knowing that over the next 8-12 quarters, these stocks are likely to deliver positive returns for 6-10 quarters, cumulatively earning at least 5-7% above risk-free alternative investments. With the KSE-100 index now returning to its mean valuation of 6.5-7x, accompanied by dividend yields between 7-10%, investors are poised to enjoy sustainable growth over the next two to three years. A high probability exists that the ongoing global trade uncertainties and de-globalisation will create instability, which could push down global oil prices and inflation. As a major beneficiary of falling oil prices, Pakistan stands to gain from reduced inflation, improved foreign reserves, and increased domestic consumption and industrial activity. The KSE-100 could see its P/E ratio return to double digits within three years, with the index potentially reaching 200,000 – once as unimaginable as 125,000 seemed two years ago. Expectations from policymakers Policymakers are expected to continue improvements on tax collection side to widen the tax net by signalling reduction in corporate and salary tax by 1% per year for the next 10 years, reducing industrial energy tariff for next 10 years contingent upon new exportable products and job creation, accelerate pending petrochemical, refinery, blue economy and NEV policy implementations and ensure agricultural productivity is enhanced and minerals in Balochistan and K-P are explored and value added with technology transfer to regain stronger geopolitical power. The end objective should be forex reserves worth 12 months of import in 10 years' worth $100 billion. No rest until then. The writer is an independent economic analyst
Express Tribune
a day ago
- Express Tribune
PSX marks 2nd week of record highs
Listen to article The KSE-100 index of the Pakistan Stock Exchange (PSX) surged 2,351 points, or +2% week-on-week (WoW), to close at 134,300, marking a second week of gains driven by a strong earnings outlook, record remittances and positive macro news. Major boosts came from a US-Pakistan trade deal, $2 billion investment from Azerbaijan and rising Panda bond expectations. The State Bank's foreign currency reserves hit a 39-month high at $14.5 billion. Commercial banks led gains, adding 1,329 points, while cement, auto and textile sectors followed. UBL, Meezan Bank and MCB Bank were the top gainers while Bank AL Habib and Engro Fertilisers were the major drags. Average daily turnover fell 2% to 947.8 million shares and foreign investors sold $5.76 million worth of equities, but it was offset by local buying. Among FY25 highlights were remittances hitting $38.3 billion (+27%), auto sales higher by 43% and early retiring of Rs1.5 trillion worth of debt. Analysts see continued momentum with room for profit-taking. The index trades at 6.8x forward price-to-earnings ratio, offering a 7.4% dividend yield. Top picks include OGDC, Pakistan Petroleum, Meezan Bank, MCB Bank, PSO, Hubco and Systems Limited. On a day-on-day basis, the PSX extended its rally on Monday as the bullish momentum persisted, with the index surging 1,421 points (+1.08%) to 133,370, backed by encouraging macroeconomic signals. On the second trading day, the market shot up to a new peak above 134,000 points in intra-day dealings but it could not sustain the momentum and closed almost flat as investors offloaded their holdings to book profit. On Wednesday, the bourse witnessed volatile trading as the benchmark KSE-100 index recorded a decline of 826 points. The market entered a phase of consolidation following recent strong rallies, fluctuating between intra-day high of 133,566 and intra-day low of 132,326. The following day, the PSX had a positive session, gaining 1,205 points in the backdrop of historic high remittances at $38 billion for FY25 and $1 billion in Islamic financing from a Dubai Islamic Bank-led consortium, marking the return to Middle Eastern markets after two years. Consolidation continued at the market on Friday, when the index floated in both directions and ultimately closed at 134,300, reflecting a gain of 517 points. Arif Habib Limited (AHL), in its weekly commentary, noted that the KSE-100 index continued its upward trajectory, rising steadily from 131,949 to 134,300, marking a weekly gain of 2,351 points, or 2%. Among key developments, media reports suggested that Pakistan and the US had reached a trade and tariff deal framework ahead of the July 9 deadline, aimed at preserving market access and attracting US investment. Separately, Pakistan and Azerbaijan signed a $2 billion investment agreement during the 17th Economic Cooperation Organisation (ECO) Summit, with the final deal expected during Azerbaijan president's upcoming visit, AHL said. In the energy sector, OGDCL reported a production boost at the Rajian-05 well following ESP installation. Meanwhile, workers' remittances hit a record high of over $38 billion, up 27%. In the auto sector, FY25 sales rose 43% to 148k units, with June sales reaching a 36-month high of 21.8k units, caused by a proposed sales tax hike. The State Bank's foreign exchange reserves increased $1.77 billion to $14.5 billion – a 39-month high. The sectors that contributed positively were commercial banks (1,329 points), cement (304 points), auto assemblers (150 points), textiles (147 points) and pharmaceuticals (124 points). Meanwhile, sector-wise negative contributions came from E&P (82 points), miscellaneous (78 points), fertiliser (56 points), technology (47 points) and OMCs (39 points). Scrip-wise, positive contributions came from UBL (417 points), Meezan Bank (297 points), MCB Bank (171 points), Habib Metropolitan Bank (150 points) and Bank Alfalah (148 points). Scrip-wise, negative contributors were Bank AL Habib (103 points), Engro Fertilisers (86 points), Pakistan Services (78 points), Mari Petroleum (60 points) and Pakistan Petroleum (54 points). Foreign selling was witnessed during the week, which came in at $5.76 million compared to net selling of $15.33 million last week. Major selling was noted in commercial banks ($3.8 million), followed by fast moving consumer goods (FMCG) companies ($1.2 million). On the local front, buying was reported by mutual funds ($30.9 million) and individuals ($14.1 million), AHL added. Syed Danyal Hussain of JS Global observed that the KSE-100 index extended its bullish run during the outgoing week, gaining 2,351 points to close at 134,300. The rally was driven by several positive developments, including a surge in remittances, which reached an all-time high at $38.3 billion in FY25. Investor sentiment was further supported by reports of a potential understanding between Pakistan and the US on reciprocal tariffs, alongside news that a Dubai-based bank arranged a $1 billion financing for Pakistan.
Business Recorder
2 days ago
- Business Recorder
PSX maintains upward trajectory
KARACHI: The Pakistan Stock Exchange (PSX) maintained its upward trajectory on Friday, mainly attributed to the inflows from mutual funds, as investors continued converting their holdings from fixed income to equity funds. The benchmark KSE-100 Index gained 517.42 points, or 0.39 percent, to settle at 134,299.77 points up from the previous day's 133,782.35 points. The market opened on a positive note and remained largely in the green throughout the session, touching an intraday high of 134,931.96 points and low of 134,130.41 points. On Friday, BRIndex100 gained 56.65 points or 0.42 percent to close at 13,630.83 points with the total volume recorded at 572.99 million shares. Similarly, BRIndex30 advanced by 184.27 points or 0.46 percent to settle at 39,850.99 points. Topline Securities, in its post-session commentary, attributed the sustained positivity to continuous inflows from mutual funds, as investors continued converting their holdings from fixed income to equity funds — a trend evident in National Clearing Company of Pakistan Limited (NCCPL) data. Major contributions to the index's rise came from UBL, HUBCO, MTL, KTML and PSO, which cumulatively added 430 points. Overall, trading activity eased from the previous day's surge, with the total traded volume in the ready market clocking in at 765 million shares, compared to 941 million shares on Thursday. Similarly, the traded value stood at Rs 40.16 billion, up from Rs 36.06 billion of yesterday value. Among actively traded stocks, Bank of Punjab topped the volume chart with over 94.13 million shares changing hands with the closing rate of Rs 13.08, followed by Aisha Steel that ended the day at Rs 12.11 with 25.05 million shares traded, while Kohinoor Spinning also dominated the turnover and finished at Rs 6.69 with 23.6 million shares. Market breadth, however, remained mixed, with 220 companies advancing, 228 declining, and 29 remaining unchanged out of 477 active names. PSX witnessed a notable increase in its overall market capitalization on Friday, which rose to Rs 16.288 trillion from the previous session's Rs 16.210 trillion reflecting a gain of Rs 78 billion. This marked an uptick of approximately 0.48 percent in market cap. The BR Automobile Assembler Index finished the session at 22,427.83 points, recording an increase of 419.25 points or 1.9 percent, with a total turnover of 26.9 million shares. The BR Cement Index also closed higher at 10,840.73 points, rising by 103.24 points or 0.96 percent, on a total turnover of 57.66 million shares. Meanwhile, the BR Commercial Banks Index ended in negative territory at 38,925.79 points, down by 78.48 points or 0.2 percent, with a turnover of 127.41 million shares. The BR Power Generation and Distribution Index settled at 21,230.80 points, gaining 164.08 points or 0.78 percent, with a total of 22.66 million shares traded. Likewise, the BR Oil and Gas Index edged up by 52.83 points or 0.43 percent to close at 12,229.03 points, with a turnover of 39.54 million shares. On the other hand, the BR Technology & Communication Index closed lower at 3,046.56 points, losing 25.94 points or 0.84 percent, with a total turnover of 48.134 million shares. According to Ahsan Mehanti of Arif Habib Corporation, the Pakistan Stock Exchange surged to a new all-time high as the ongoing earnings season rally combined with a series of positive economic indicators to fuel investor sentiment. He noted that surging foreign exchange reserves, now approaching the $20 billion mark, along with a strong 38 percent year-on-year jump in auto sales for FY25, provided a major boost to market confidence. Additionally, the government's revision of Public Sector Development Program (PSDP) spending to Rs1.05 trillion for the current fiscal year and record remittance inflows acted as key catalysts, helping the market achieve another record close. Copyright Business Recorder, 2025
