PSX SUMMARY: The Pakistan stock market extended its bullish streak as a sharp drop in bond yields, coupled with a larger-than-expected decrease in inflation, fueled investor optimism. The index crossed the 84,000 mark setting another all time high (ATH) record for Pakistan Stock Market (PSX).
Despite security concerns following a deadly explosion in Karachi the previous night, which killed three people and injured 11 others, including a Chinese national, the market remained largely focused on potential returns, largely disregarding the incident and political instability in Islamabad.
The Pakistan Stock Exchange continued its bullish streak on Monday, with the KSE-100 Index surging 1,378.34 points, or 1.65%, to close at 84,910.29. This extends the market’s rally from last week when the index climbed 2,240 points, equivalent to a 2.8% gain.
The State Bank of Pakistan (SBP) conducted a Market Treasury Bills (MTBs) auction on Wednesday, raising Rs244.45 billion, with yields falling to their lowest levels since early 2022. The auction saw significant cuts in yields, dropping by 334 basis points (bps) to 14.3980% for 6-month bills and by 326 bps to 13.7350% for 12-month bills. Bids for 3-month papers were rejected.
The SBP’s target was to raise Rs250 billion, while the maturity amount stood at Rs341 billion. In a significant move, the SBP recently repurchased Rs351 billion in MTBs during a historic buyback auction, boosting liquidity in the market.
Out of the total Rs874.91 billion offered, the central bank accepted Rs60.34 billion for 6-month bills, Rs120.27 billion for 12-month bills, and an additional Rs63.84 billion through non-competitive bidding, bringing the total accepted amount to Rs244.45 billion.
The falling yields, coupled with improving inflation outlook, are driving interest in the stock market as investors seek higher returns amid a more favorable monetary environment.
Moreover, Pakistan’s official reserve assets rose significantly by $1.54 billion, or 9.8%, reaching $17.35 billion by the end of September, compared to $15.81 billion recorded in the previous month, according to official data.
INTRADAY REPORT
Throughout Monday’s session, the KSE-100 traded in a range of 1,744.27 points, reaching an intraday high of 85,047.81 (+1,515.86 points) and a low of 83,303.54 (-228.41 points). The total trading volume stood at 281.01 million shares.
Out of the 100 index-listed companies, 73 closed higher, 23 fell, 2 were unchanged, and 2 remained untraded.
Top gainers included PAKT (+9.11%), OGDC (+7.66%), SNGP (+7.19%), PPL (+6.82%), and PSO (+5.78%). Conversely, HUBC (-2.90%), ATRL (-2.29%), NPL (-2.23%), NRL (-2.12%), and IBFL (-1.41%) were the top losers.
Key contributors to the index’s rise were OGDC (+244.71 points), PPL (+172.72 points), FFC (+135.06 points), POL (+121.17 points), and ENGRO (+78.37 points). On the downside, HUBC (-113.16 points) and LUCK (-18.12 points) were among the largest drags.
Sector-wise, the Oil & Gas Exploration sector contributed the most to the index’s gains, adding 586.10 points, followed by Fertilizer (+277.11 points) and Commercial Banks (+245.46 points). Meanwhile, Power Generation & Distribution (-102.17 points) and Refinery (-13.02 points) weighed down the index.
In the broader market, the All-Share Index gained 968.23 points to close at 54,022.04, a rise of 1.82%. The total market volume increased to 449.51 million shares, with a traded value of Rs30.20 billion, up by Rs9.67 billion from the previous session. A total of 254,201 trades were recorded across 447 companies, with 217 closing up, 167 down, and 63 unchanged.
TOP TEN BY VOLUME:
Top volume leaders included PPL with 40.78 million shares, followed by HUBC (28.08 million) and FCCL (23.13 million).
- PPL
Price: 126.69 | Change: +6.82% | Volume: 40,779,930 - HUBC
Price: 121.7 | Change: -2.90% | Volume: 28,080,507 - FCCL
Price: 28.0 | Change: +3.90% | Volume: 23,127,553 - KOSM
Price: 8.38 | Change: +3.20% | Volume: 21,957,966 - OGDC
Price: 166.92 | Change: +7.66% | Volume: 20,721,547 - PACE
Price: 6.11 | Change: -2.86% | Volume: 19,337,293 - AIRLINK
Price: 145.24 | Change: +1.60% | Volume: 16,176,636 - WTL
Price: 1.21 | Change: +0.83% | Volume: 15,118,648 - BAFL
Price: 64.66 | Change: +2.70% | Volume: 11,325,520 - HUMNL
Price: 10.96 | Change: +10.04% | Volume: 11,199,293
These stocks recorded the highest trading volumes in Monday’s session, showcasing significant investor activity and varying price movements across different sectors.
So far in the fiscal year, the KSE-100 has gained 6,465 points or 8.24%, while the ongoing calendar year has seen an increase of 22,459 points, equivalent to 35.96%.
PAKISTAN MARKETS SUMMARY
The Pakistani rupee (PKR) weakened slightly by 12.44 paisa, or 0.04%, against the US dollar in Monday’s interbank market, closing at PKR 277.64 per USD, down from the previous close of PKR 277.52. The rupee fluctuated during the session, reaching a high of 277.75 and a low of 277.65.
Gold prices in Pakistan inched higher on Monday, with 24-karat gold priced at Rs275,700 per tola, up by Rs200. Over the past week, prices remained near their peak, with a modest decline of Rs500 per tola.
On the global market, gold (XAU/USD) traded with a negative bias for the fourth straight session on Monday. The downside remains limited, with the metal staying within a familiar range. Pressure on gold prices stems from the US Dollar holding near a seven-week high after a strong US jobs report on Friday, reducing expectations for aggressive rate cuts by the Federal Reserve, which dampened demand for the non-yielding asset.
