Latest news with #KSE100
Arab News
17-07-2025
- Business
- Arab News
Fertilizer sector fuels Pakistan stock market rally as benchmark index hits record high
ISLAMABAD: Pakistan's main stock index surged to a new record on Thursday, closing above the 138,000 mark for the first time, driven by strong institutional inflows and a sharp rally in fertilizer and blue-chip stocks, according to analysts and market data. The benchmark KSE-100 index closed at 138,665.49 points, gaining 2,285.53 points or 1.68 percent from the previous close of 136,379.96, a bullish move that traders said reflected investor optimism ahead of earnings season and growing expectations of a credit rating upgrade. Fertilizer companies led the rally, with Fauji Fertilizer Company Limited (FFC) and Engro Fertilizers Limited (EFERT) together adding 563 points to the index. Other top contributors included United Bank Limited (UBL), Systems Limited (SYS), Engro Holdings (ENGROH), and Hub Power Company Limited (HUBC), which added another 763 points collectively, brokerage firm Topline Securities said in its daily report. 'This rally was driven by heavy institutional flows, with local investors stepping in to scoop up value,' Topline said. 'With sentiment back in high gear, today's bullish close sets an upbeat tone heading into the heart of earnings season.' Investor activity remained high with 778 million shares traded, while the total value of trades stood at Rs39.95 billion ($140.2 million). Pakistan International Bulk Terminal (PIBTL) led volumes, with 82.6 million shares exchanged during the session. Ahsan Mehanti, CEO of Arif Habib Commodities, said investor confidence was boosted by anticipated strong corporate earnings, attractive dividend expectations and government engagement with Moody's over a potential rating upgrade. 'Government affirmation over talks with industrials on budgetary measures, and the finance minister's presentation to Moody's of compelling evidence for a ratings improvement played a catalytic role in today's close,' Mehanti said.
Business Recorder
15-07-2025
- Business
- Business Recorder
PSX extends historic rally as KSE-100 surges past 137,000 mark
Equities at the Pakistan Stock Exchange (PSX) continued to set new records, with the benchmark KSE-100 Index crossing the 137,000 level amid a gain of nearly 1,200 points during the opening minutes of trading on Tuesday. At 9:35am, the benchmark index was at 137,684.28, an increase of 1,181.75 points or 0.87%. Across the board buying was observed in key sectors including automobile assemblers, commercial banks, oil and gas exploration companies, OMCs, power generation and refinery. Index-heavy stocks, including ARL, HUBCO, MARI, PPL, POL, PSO, MCB, MEBL, NBP and UBL traded in the green. On Monday, the PSX witnessed a resounding rally on the first day of the week, hitting a new historic high, propelled by strong institutional participation and growing investor confidence. The benchmark KSE100 index finished by a remarkable 2,203 points, or 1.64%, to finish at a record 136,502.54 points. Globally, Asian shares climbed and the dollar held gains on Tuesday as trade talks remained in the spotlight in a week that will see key readings on US inflation and bank earnings. Oil prices edged lower after US President Donald Trump issued a 50-day deadline for Russia to end the war in Ukraine to avoid energy sanctions. Japanese government bond yields jumped to ma ulti-decade high as a critical upper house election neared. Trump signalled he was open to discussions on tariffs after his weekend threat to impose 30% duties on the European Union and Mexico from August 1. Japan is reportedly trying to schedule high-level talks with the US this Friday. Market reaction to the tariff uncertainty has been rather benign, making earnings in the United States this week all the more important for cues, said National Australia Bank strategist Rodrigo Catril. MSCI's broadest index of Asia-Pacific shares outside Japan was up 0.4%, after U.S. stocks ended the previous session with meagre gains. Japan's Nikkei gauge added 0.2%. The EU accused the US of resisting efforts to strike a trade deal and warned of countermeasures if no agreement is reached. Trump said he was open to further discussions with the EU and other trading partners. Japan's Prime Minister Shigeru Ishiba is arranging to meet U.S. Treasury Secretary Scott Bessent in Tokyo on Friday, the Yomiuri newspaper reported, ahead of an August 1 deadline before 25% tariffs are due to take effect. This is an intra-day update
Business Recorder
15-07-2025
- Business
- Business Recorder
PSX hits new historic high
KARACHI: The Pakistan Stock Exchange witnessed a resounding rally on the first day of the week, hitting new historic high, propelled by strong institutional participation and growing investor confidence. The benchmark KSE100 index finished by a remarkable 2,203 points, or 1.64 percent, to finish at a record 136,502.54 points as compared to the Friday's closing 134,299.77 points. Earlier in the session, the index had touched an intraday peak of 136,842 points, and a low of 134,937 points reflecting an exceptionally bullish mood in the market. BRIndex100 gained 224.38 points or 1.65 percent to close at 13,855.21 with a total volume of 603.15 million shares, while BRIndex30 increased by 337.2 points or 0.85 percent to settle at 40,188.19 with a total volume of 270.13 million shares. According to Topline Securities' sales desk, the rally was led by aggressive buying from local mutual funds and institutions. Much of the upward thrust came from the banking sector, where heavyweights United Bank Limited, Habib Bank Limited, Fauji Fertilizer Company, Bank AL Habib, and MCB Bank collectively added 1,443 points to the index. This sector-wide surge was fueled by positive earnings expectations and investor optimism over stable policy direction. Trading activity remained vibrant throughout the session. The ready market recorded a turnover of 841 million shares, compared to 765 million shares in the prior session. The total traded value stood at Rs 37 billion, slightly lower than the Rs 40 billion recorded on Friday. Crescent Star Insurance led the volumes chart with 47.2 million shares and closed at Rs 4.34 followed by K-Electric with 43 million shares and First Dawood Properties with a volume of 35 million shares. Both finished at Rs 5.33 and Rs 5.55 respectively. Market capitalization expanded sharply during the session, increasing from Rs 16.29 Trillion rupees in the previous session to Rs 16.49 Trillion rupees by the close, an impressive addition of over Rs 205 Billion in a single trading day. Among individual gainers, PIA Holding Company LimitedB shares spiked by Rs 2,615 to close at Rs 28,768, while S.S. Oil Mills gained Rs 92 to end at Rs 1,010. On the losing side, Ismail Industries fell by Rs 110 to Rs 2,020, and Unilever Pakistan Foods dropped Rs 80 to settle at Rs 23,336. Overall, the session witnessed strong breadth with 264 stocks closing in the green, 195 declining, and 16 remaining unchanged out of a total of 475 companies traded in the ready market. The BR Automobile Assembler Index closed at 22,743.17 points, rising by 315.34 points or 1.41 percent, with a total turnover of 12.27 million shares. The BR Cement Index settled at 10,777.76 points, down by 62.97 points or 0.58 percent, with a total turnover of 37.90 million shares. The BR Commercial Banks Index ended at 40,475.13 points, advancing by 1,549.34 points or 3.98 percent, with a total turnover of 104.91 million shares. The BR Power Generation and Distribution Index surged by 404.13 points or 1.9 percent to close at 21,634.93 points, with a total turnover of 57.92 million shares. The BR Oil and Gas Index declined by 45.18 points or 0.37 percent, ending the session at 12,183.85 points, with a total turnover of 39.74 million shares. Meanwhile, the BR Technology & Communication Index recorded a gain of 10.06 points or 0.33 percent, settling at 3,056.62 points, with a total turnover of 62.93 million shares. Muhammad Hasan Ather of JS Global noted that the KSE-100 Index rally was supported by strong investor confidence driven by favorable macro indicators, record remittances, and widespread gains in key sectors such as banking and cement. Ather further added that continued government support and solid earnings expectations played a key role in strengthening market sentiment. While the upward trajectory is likely to persist in the near term, he cautioned that selective profit-taking may occur as the market approaches overbought territory. Copyright Business Recorder, 2025
Express Tribune
07-07-2025
- Business
- Express Tribune
Bourse eyes over 27% return in FY26
KSE Index shed 790 points within the first hour of trading, as cement and pharmaceutical stocks come under pressure Pakistan's benchmark KSE-100 Index is projected to deliver a robust 27.4% return in FY26, underpinned by expectations of lower interest rates, earnings recovery, and improved macroeconomic stability. However, despite the bullish outlook, key structural and external challenges continue to weigh on investor sentiment. Persistent foreign outflows, fiscal slippages, and Pakistan's dependence on International Monetary Fund (IMF) reforms may dampen the pace of market re-rating. Additionally, sector-specific risksranging from regulatory delays in E&P payouts and low cement sector utilisation to inconsistent export incentives in textiles and techhighlight the fragile nature of the recovery. Pakistan's equity market is poised for a strong year ahead, with the benchmark KSE-100 Index projected to deliver a 27.4% return in FY26, according to a comprehensive strategy report released by Arif Habib Limited (AHL) titled "Strategy FY26 – Emerging Stronger." The optimism is anchored in expectations of a low interest rate environment, steady corporate earnings growth, and improved macroeconomic indicators. "We expect KSE 100 to reach 160,000 Index level by Jun 2026, a return of 29%. Out of this, 11% is through PE re-rating, 9% earnings growth and 9% dividend yield," Topline Securities report said. The projected return on the KSE-100 Index in FY26 is largely driven by expectations of lower interest rates, following a shift in monetary policy due to easing inflation, according to AHL. The State Bank of Pakistan (SBP) has already begun rate cuts, bringing the policy rate down to 11%, with a further reduction anticipated. This softening of interest rates is expected to boost equity valuations and encourage a shift in liquidity from fixed income to the stock market. Another key driver is improving corporate earnings, particularly in cyclical sectors such as cement, banking, and oil and gas. Earnings growth is projected at 14% excluding banks and E&Ps, and around 9.2% overall. This reflects a rebound in demand, improved margins from cost efficiencies, and better operating leverage in key industries. Financial institutions like MCB, Meezan Bank, and NBP are expected to benefit from strong deposit bases and better spreads. The forecast is further supported by macroeconomic stability anchored in continued engagement with the IMF. With expected disbursements of over $2.6 billion and progress on reforms, economic fundamentals such as inflation, the current account deficit, and exchange rate management are stabilising. This reduces uncertainty for both domestic and foreign investors, enhancing overall market sentiment. Lastly, attractive valuations and rising domestic participation are critical contributors. The KSE-100 index is trading at a forward P/E of 6.8xwell below its 10-year average and regional peersoffering strong upside. Domestic investors now drive 93% of market volumes, led by mutual funds, companies, and individuals. Anticipated inflows from IPOs, right issues, and insurance funds are expected to support future gains. Arif Habib Limited (AHL) projects the KSE-100 to reach 168,000 by June 2026, implying a forward P/E of 7.4x on FY27 earnings. However, analysts warn that external and structural headwinds could temper this momentum. Pakistan's GDP growth for FY26 is forecast at 3.3%, inflation at 5.4%, and the rupee at Rs293/$. The current account deficit is projected at $1.6 billion. Yet, IMF dependence remains a concern, with two reviews and $2.6 billion in disbursements at stake. A revenue shortfall may push the fiscal deficit to Rs5.8 trillion (5.2% of GDP). Meanwhile, foreign outflows of $304 million in FY25 reversed FY24's inflows. FY26 may see only modest inflows. Despite Rs4.4 billion raised via IPOs in FY25, the expected Rs1418 billion pipeline for FY26 may not sufficiently deepen market participation.
Arab News
07-07-2025
- Business
- Arab News
Pakistan stock market breaches 133,000 points barrier as investors turn to equities
KARACHI: The benchmark KSE-100 crossed the 133,000 points barrier during intra-day trading on Monday to hit a record high, according to data shared by the Pakistan Stock Exchange (PSX), with a financial analyst attributing the rally to investors shifting from fixed income funds toward equities, and the country's improving macroeconomic conditions. The benchmark KSE-100 index rose by 1,907.53 points or 1.45 percent to reach 133,856.59 points at 12:31 p.m. from the previous day's close of 131,949.06 points, according to the PSX website. Pakistan's state broadcaster said the stock market's upward trend reflects the business community's growing confidence in the government's economic policies. 'The top-most factor contributing to market rally is conversion of fixed income funds to equities,' Shankar Talreja, head of research at Karachi-based brokerage company Topline Securities, told Arab News. 'Stocks generating over nine percent of the dividend yield have contributed most to the index rally,' he continued, 'This is because this dividend yield matches the fixed income rate and any capital gain on these stocks would be cherry on the top.' He noted that the market has been responding to improving macroeconomic indicators, adding that the State Bank of Pakistan's reserves climbed to $14.5 billion at the end of June. 'The regional and geopolitical issues also subsided last month which has further given confidence to local investors,' Talreja added, referring to the Pakistan-India, Iran-Israel armed conflicts. 'We expect the index to touch 160,000 by June 2026.' The development comes after the PSX breached the 130,000 points barrier last week to close at an all-time high, with experts attributing the surge to low inflation and surging crude oil prices. Pakistan's stocks have surged as Islamabad moves to consolidate its financial recovery after years of economic turbulence. In recent years, the country has implemented tough structural reforms under International Monetary Fund loan programs aimed at reducing fiscal deficits and restoring investor confidence.
