Stocks continue to rally on economic optimism

Published October 30, 2024 Updated October 30, 2024 08:10am

KARACHI: The unabated aggressive buying amid growing economic optimism and easing political noise post-26th constitutional amendment aided the KSE 100 index to break another psychological barrier of 91,000 intraday on Tuesday.

The anticipation of a significant cut in the benchmark interest rate early next month was another reason that kept investors in a bullish mindset as the market extended its record-setting spree to the seventh straight day.

From the beginning of the trading, the benchmark KSE-100 index rema­ined in the green zone, hitting an intraday record high of 91,358.15, gaining 1,162.63 points. However, the index settled at the highest-ever level at 90,864.09, adding 668.57 points or 0.74pc day-on-day.

Ahsan Mehanti of Arif Habib Corporation said stocks reached an all-time high as investors weighed robust financial results and speculated about the imminent SBP policy rate cut this week.

He added that foreign interest in blue chip banking, fertiliser stocks, and institutional interest amid easing lending rates supported bullish activity at the PSX.

Topline Securities Ltd said the positive performance was primarily driven by robust corporate earnings, which exceeded expectations and laid a strong foundation for investor confidence. Instit­u­tional buying further supported the rally, reinforcing the overall optimism.

Key contributors to the index included Fauji Fert­iliser Company, Systems Ltd, Cherat Cement Comp­any Ltd, Hub Power Com­pany Company, and Glaxo­SmithKline Pakistan Ltd, which collectively added 515 points.

Investor participation improved as trading volume rose 6.26pc to 602.814m shares while its value fell 3.44pc to Rs28.20 day-on-day.

Stocks contributing significantly to the traded volume included WorldCall Telecom (41.40m shares), Silkbank (31.28m shares), Pace Pakistan (30.20m shares), Power Cement (25.61m shares) and Fauji Foods (24.81m shares).

The shares registering the most significant increases in their prices in absolute terms were Unilever Foods (Rs162.00), Siemens Pakistan (Rs122.62), Rafhan Maize (Rs101.52), Philip Morris (Rs68.11) and Abbott Laboratories (Rs58.08).

The companies that suffered significant losses in their share prices in absolute terms were Hallmark Company (Rs27.38), Sazgar Engineering Works Ltd (Rs22.00), Sitara Chemical (Rs17.49), Attock Cement (Rs16.88) and Pioneer Cement (Rs14.35).

Foreigners turned net sellers as they offloaded shares worth $5.01m.

Published in Dawn, October 30th, 2024

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