KARACHI: The rare record-breaking spree continued for the fourth session on the eve of Eidul Fitr, which was supported by two-year high remittances and Saudi Arabia’s commitment to expediting its investment plans in Pakistan, propelling the benchmark KSE 100 index to close at new high above 70,000 level on Tuesday.

The Pakistan Stock Exchange (PSX) achieved a remarkable milestone during the outgoing holy month, as it usually sees low volume and lacklustre activities in Ramazan. However, this year, the month proved to be different due to political stability post-election and other developments, tossing the market to new peaks in the last session before Eid holidays.

Ahsan Mehanti of Arif Habib Corporation said the equity market settled at a record amid upbeat remittances data rising year-on-year by 16.4pc to $2.95bn in March and affirmation of a $5bn investment package from Saudi Arabia for economic support.

Last year, Saudi Arabia promised to invest $25 billion within the next five years under the Special Investment Facilitation Council (SIFC), which is seeking investments in the energy, IT, minerals, defence and agriculture sectors from the Arab countries.

The $5bn investment is expected to be made in the minerals sector, especially the Reko Diq gold and copper mines. Saudi Arabia has already been studying the prospects of tapping into this sector, though the kingdom also has interests in petroleum, agriculture, and IT sectors.

Mr Mehanti said the rising global crude oil prices and renewed hopes for support from the International Monetary Fund and the World Bank to settle Pakistan’s external financing needs of over $25bn in the next fiscal year also fuelled the bullish sentiments.

He said speculations ahead of new IMF loan programme talks due next week and expectations of a cut in the SBP policy rate amid falling inflation triggered value-hunting across the board.

Topline Securities Ltd Chief Executive Officer Muhammad Suhail said the benchmark KSE 100 index has surged by an astounding 70pc over the past nine months (equivalent to a 75pc increase in US dollar terms) from end June, marking a historic rally not witnessed in the PSX for the past two decades.

Despite this rally, the average market price to earnings (PE) ratio is 4x, half the historical average of 8x, he added.

Fauji Fertiliser Company, Meezan Bank Ltd, Hub Power Company Ltd, Mari Petroleum Ltd and Engro Fertilisers contributed 471 points to the index.

As a result, the benchmark KSE 100-share index surged to an intraday record of 70,677.30, gaining 1,057.31 points. However, it closed at 70,314.72 points after adding 694.73 points, or 1pc from the preceding session.

The overall trading volume rose 15.95pc to 389.39 million shares. The traded value also increased by 12.78pc to Rs17.31bn on a day-on-day basis.

Stocks contributing significantly to the traded volume included WorldCall Telecom Ltd (34.37m shares), Pakistan International Bulk Terminal (27.81m shares), Pakistan International Airlines Corporation Ltd (19.03m shares), Fauji Foods Ltd (13.01m shares) and Agritech Ltd (12.73m shares).

The companies registering the major increases in their share prices in absolute terms were Rafhan Maize Products Company Ltd (Rs100.00), Mari Petroleum Ltd (Rs55.85), Premium Textile Mills Ltd (Rs24.00), Abbott Laboratories Ltd (Rs21.67) and Millat Tractors Ltd (Rs14.75).

The shares registering the most significant decreases in their share prices in absolute terms were Sapphire Textile Mills Ltd (Rs60.00), Bata Pakistan (Rs50.00), Shahmurad Sugar Mills Ltd (Rs30.31), Pakistan Hotels Developers Ltd (Rs15.53) and Sapphire Fibres Ltd (Rs11.67).

Foreign investors remained net buyers as they bought shares worth $2.47m.

Published in Dawn, April 10th, 2024