KARACHI: The stock market took the investors on a roller-coaster ride during the weekend session as charged bulls narrowly missed the 100,000 milestone due to mid-session profit-taking, which massively trimmed early gains on Friday. However, the KSE-100 index extended its record-setting spree with an improved closing near 98,000.

According to Topline Securities Ltd, the rally was led by the banking sector as the index gained to make an intraday high of 2,295 points (up by 2.36pc) largely on a rumour that the Pakistan Banks Association has tabled the removal of the minimum deposit requirement (MDR) on savings deposits for conventional banks. However, profit-taking was observed later during the session as the authorities had not confirmed the rumour. The KSE-100 index settled at 97,798, up 469.83 points, or 0.48pc, compared to Thursday.

Topline Securities Ltd CEO Mohammed Sohail said the stock market witnessed a remarkable resurgence, with trading activity hitting record highs.

Tahir Abbas of Arif Habib Ltd said the market achieved another milestone as trading activity surged to a 7.5-year high, with a traded value of Rs45.5bn ($164m).

“This marks the highest activity in the regular market since May 31, 2017 (MSCI reclassification day). Excluding that day, it is the highest traded value recorded since April 11, 2008, nearly 17 years ago,” he added.

The top contribution to the index came from the banking sector as Meezan Bank, Bank Al-Habib, MCB Bank, Haibib Bank, Bank Alflah, and HabibMetro Bank cumulatively contributed 1,139 points to the index.

Ahsan Mehanti of Arif Habib Corporation stocks closed to an all-time high as investors weigh falling lending rates and banks levy on large depositors to avoid the 15pc tax.

He added that higher global crude oil prices, rupee stability and rising SBP forex reserves fuelled a bullish run at the PSX.

Speaking about the sustainability of the record-breaking streak at PSX, Ali Najib, Head of Sales at Insight Securities, told Dawn that a low forward price-to-earnings multiple of around 5x with a massive increase in corporate profitability was the key factor that attracted aggressive buying interest from investors who were shifting their funds to equities after a substantial cut in the State Bank of Pakistan’s policy rate to 15pc from an unprecedented level of 22pc since June.

He expected a massive inflow from fixed-income deposits as the SBP is poised for a fifth straight cut in its next monetary policy review due mid-December.

Furthermore, he added that the country is under IMF umbrella, and vigilant implementation of fiscal and monetary reforms binding under the new Extended Fund Facility will further boost investor confidence in the economy.

The overall trading volume surged 28.28pc to 1.24 billion shares. The traded value also rose 29.31pc to Rs45.47bn on a day-on-day basis.

Stocks contributing significantly to the traded volume included WorldCall Telecom (177.13m shares), K-Electric (124.1m shares), Hascol Petroleum (105.01m shares), Fauji Foods (77.69m shares) and Treet Battery (43.78m shares).

The shares registering the highest increases in their share prices in absolute terms were Nestle Pakistan (Rs83.69), PIA Holding Co [B] (Rs78.04), Rafhan Maize (Rs58.21), Ismail Industries (Rs50.01) and Meezan Bank (Rs22.40).

The companies registering significant decreases in their share prices in absolute terms were Unilever Foods (Rs85.01), Abbott Lab (Rs61.72), Service Industries (Rs39.23), Siem­ens Pakistan (Rs33.42) and Highnoon Lab (Rs30.71).

Published in Dawn, November 23th, 2024