- The winning streak continues on hopes of stability.
- Investors applaud reports of unlikely mini-budget.
- Blue-chip banking stocks remain in the spotlight.
Stocks extended their winning streak on Friday, hitting a new all-time high after briefly breaching the 95,000 mark, as optimistic developments including strong foreign exchange data and the improbability of a government-dictated mini-budget International Monetary Fund (IMF), have fueled high risk. -in rally.
The Pakistan Stock Exchange (PSX) stock benchmark KSE-100 index climbed to a record high of 94,763.64 points, up 571.75 points, from the previous close of 94,191.89 points, after flirting with an intraday high of 95,278.26 points.
The market’s bullish momentum highlights a growing wave of investor confidence, fueled by encouraging economic indicators.
Reacting to the rise, Ahsan Mehanti, Managing Director and CEO of Arif Habib Commodities, said stocks hit a new all-time high amid easing fears over mini-budget and High Court relief of Islamabad (IHC) on tax levies in the banking sector.
“The fall in bank lending rates and the stability of the rupee have contributed to the ongoing recovery in the capital market,” Mehanti added.
Foreign exchange reserves held by the central bank hit a more than two-year high of $11.26 billion on November 8, while the rupee also rose for the second consecutive day on Thursday, sales and remittances in dollars from exporters having exceeded demand from importers.
Reports suggest that the IMF has not expressed any concerns about Pakistan meeting its revenue collection targets, allaying fears of a mini-budget or new fiscal measures. This has boosted investor confidence and increased trading activity across all sectors.
The mission, led by its Chief of Mission Nathan Porter, is visiting Pakistan to review recent developments and performance of the Expanded Financing Facility (EFF) program to date.
After meetings with Pakistani authorities, IMF staff reportedly welcomed an increase in the tax-to-GDP ratio of almost 1.5 percentage points – a significant achievement by the Federal Bureau of Revenue (FBR).
Topline Securities, in its market commentary, said the banking sector received a boost following the IHC’s decision to temporarily ban the government from levying additional tax of up to 15 per cent from banks on private sector borrowing below target.
In terms of value traded, Pakistan State Oil (2.86 billion rupees), Attock Refinery Limited (2.24 billion rupees), TRG Pakistan (1.76 billion rupees), Hub Power Company (1.3 billion rupees) and Oil and Gas Development. The company (Rs 1.29 billion) dominated the trading activity on the PSX, the report added.
He noted that the major contributors to the index were United Bank Limited, Habib Bank Limited and Meezan Bank Limited, which collectively added 301 points to the benchmark index.
In the pharmaceutical sector, The Searle Company Limited was the most actively traded stock, with 12.6 million shares worth Rs1.08 billion changing hands.
Decent participation was seen in the market, with traded volumes amounting to 892 million shares and traded value amounting to Rs30.8 billion. WorldCall Telecom Limited became the volume leader with 78 million shares traded.