Stocks scale new peak on rate cut optimism
KARACHI: The benchmark KSE 100 index scaled new heights on Wednesday by breaching yet another psychological barrier of 105,000 points despite early fluctuations.
Topline Securities Ltd noted that the market maintained its bullish momentum, reaching an intraday high of 105,474 points. Persistent buying by local institutions and high trading volumes reflected strong investor confidence, fuelled by expectations of another cut in the interest rate in the upcoming Monetary Policy Meeting scheduled for Dec 16.
As a result, the benchmark settled at 105,104.34, up 545.26 points or 0.52 per cent day-on-day.
Ahsan Mehanti of Arif Habib Corporation said stocks closed at an all-time high, led by the oil and energy sector amid upbeat data on petroleum sales rising by 15pc and cement despatches by 5.6pc in November.
He added that the imminent policy rate cut, rupee stability, upbeat economic indicators on exports, trade deficit and external account kept fuelling the bull run at PSX.
Major contributors to the index’s surge included Mari Petroleum, Hub Power, Airlink Communication, Millat Tractor, and PSO, collectively adding 442 points.
However, the trading volume was down 0.97pc to 1.74 billion shares while the traded value dipped 10.96pc to Rs50.41bn on a day-on-day basis.
Stocks contributing significantly to the traded volume included WorldCall Telecom (257.53m shares), Cnergyico PK (213.20m shares), Pakistan International Bulk Terminal (89.65m shares), Pak Elektron (75.74m shares) and Power Cement (69.20m shares).
The shares registering the most significant increases in their share prices in absolute terms were Unilever Foods (Rs334.89), Hoechst Pakistan (Rs53.32), Khyber Textile (Rs38.99), Bestway Cement (Rs29.12) and Mari Petroleum (Rs24.44).
The companies registering significant decreases in their share prices in absolute terms were Sapphire Fibres (Rs87.62), Service Industries (Rs51.40), Rafhan Maize (Rs48.02), The Premier Sugar Mills (Rs20.45) and Pakistan Services (Rs19.81).
Foreign remained net sellers as they offloaded shares worth $2.25m, while mutual funds purchased shares worth $7.17m.
Published in Dawn, December 5th, 2024