KARACHI: The stock market extended its record-setting spree to a sixth straight session on Monday amid anticipation of a more significant cut in the policy rate, which fuelled the shifting of money from banks to the equity market, propelling the KSE 100 index to settle above 90,000 for the first time.

Initially, the benchmark KSE-100 index suffered a loss of 261.24 points, hitting an intraday low at 89,732.73, but aggressive value-buying in the later hours pushed the index to the day’s high at 91,054.84, gaining 1,060.87 points. However, the index settled at a record 90,195.52, adding 201.55 points or 0.22pc day-on-day.

Ahsan Mehanti of Arif Habib Corporation said stocks hit an all-time high in the earnings season rally as investors expected a major fourth straight cut in the SBP policy rate early next month.

He added that bullish global equities on easing Middle East tensions, approvals of a $2.75bn ADB loan for budget support over the next four years and the government deliberation on privatising state-owned enterprises also contributed to a bullish spell at the PSX.

Topline Securities Ltd said the trading session exhibited significant volatility as investors took advantage of profit opportunities. However, upward momentum was driven by expectations of an imminent rate cut. Furthermore, investor sentiment was bolstered by the announcement of a $1.4bn loan sought from China.

Key contributors to the index’s rise included Systems Ltd, Colgate Palmolive, PSO, Pakistan Oilfield Ltd, and Pakistan Petroleum Ltd, which collectively added 341 points.

However, the market witnessed reduced investor participation as trading volume fell 18.44pc to 567.26m shares while its value tumbled 22.87pc to Rs29.21 day-on-day.

Stocks contributing significantly to the traded volume included Fauji Foods (53.64m shares), K-Electric (29.87m shares), Sui Southern Gas (27.40m shares), Kohinoor Spinning Mills Ltd (21.27m shares) and Pace Pakistan (20.37m shares). The shares registering the most significant increases in their prices in absolute terms were Unilever Foods (Rs333.00), Siemens Pakistan (Rs111.47), Indus Motor (Rs106.32), Rafhan Maize (Rs93.64) and Nestle Pakistan (Rs86.18).

The companies that suffered significant losses in their share prices in absolute terms were Hoechst Pakistan (Rs147.72), Pak Engineering (Rs85.46), Lucky Core Ind (Rs31.18), Shield Corporation (Rs28.40) and Exide Pakistan (Rs27.94).

After a long break, foreigners turned net buyers and purchased shares worth $1.47m.

Published in Dawn, October 29th, 2024