The Pakistan Stock Exchange (PSX) experienced a strong bullish momentum, fueled by surging foreign exchange reserves and the rollover of Saudi deposits, pushing the benchmark KSE 100 index past the 109,000 mark on Friday.
Bullish Trends Driven by Oil, Banking Sectors
Ahsan Mehanti from Arif Habib Corporation stated that the oil and banking sectors played a key role in this rally. Market speculations ahead of the State Bank of Pakistan’s (SBP) key policy rate announcement next week, along with assurances from Pakistan’s finance minister to the IMF, also helped boost investor sentiment.
KSE 100 Index Hits Record High
The KSE 100 index rose by 1,239.12 points, reaching an intraday record high of 109,478.09, before closing at 109,053.95, marking a day-on-day gain of 814.98 points or 0.75%.
Saudi Deposit Extension Boosts Market Sentiment
Topline Securities attributed the rally to the news that Saudi Arabia extended its $3 billion deposit with the State Bank of Pakistan for another year, bolstering Pakistan’s foreign exchange reserves.
Strong Institutional Buying Drives Activity
Market activity was driven primarily by institutional buying, with notable contributions from companies such as Engro Corporation, United Bank, Meezan Bank, Dawood Hercules, and Mari Petroleum, collectively contributing 956 points to the index.
Positive Market Sentiment Fueled by Reserves Growth
Ali Najib from Insight Securities explained that the extension of the Saudi deposit, coupled with Pakistan’s foreign exchange reserves surpassing $16 billion, helped sustain the bullish trend. Mutual funds also showed strong buying interest, further driving the market’s rally.
Sector-Wide Interest Boosts Trading Volume
The fertilizer, banking, technology, exploration and production, cement, and pharma sectors all attracted significant buying interest. Trading volume increased by 3.07% to 1.69 billion shares, though the traded value decreased by 9.08% to Rs 57.48 billion.
Top Stocks by Trading Volume
Some of the most traded stocks included WorldCall Telecom (368.90 million shares), The Bank of Punjab (115.55 million shares), Cnergyico PK (93.63 million shares), Pak Elektron (60.24 million shares), and Power Cement (58.99 million shares).
Top Gainers and Losers
Stocks that saw the highest price increases included Rafhan Maize (Rs 422.41), Sapphire Fibres (Rs 55.98), and Khyber Textile (Rs 47.82). On the other hand, Unilever Foods (Rs 64.41), Pakistan Tobacco (Rs 23.06), and Thal Ltd (Rs 16.31) registered the most significant price decreases.