Massive rally tosses index above 55,000 level

Published November 11, 2023
A screengrab of market activity on Friday. — PSX/website
A screengrab of market activity on Friday. — PSX/website

KARACHI: Continuing its momentum from the preceding session, the KSE-100 index recorded further gains to close at another all-time high on Friday.

Topline Securities Ltd attributed this positivity to the auction of Pakistan Investment Bonds (PIBs) held on Nov 8 in which yields came down by 15-180 basis points. The drop indicates the market expects a cut in the policy rate going forward, it added.

In addition, the long-awaited notification from the Oil and Gas Regulatory Authority on the increase in gas prices also provided a spur to the stock market.

However, the KSE-30 index, which tracks the performance of the top 30 companies, is still down 34pc from its peak, Mohammed Sohail of Topline Securities pointed out.

Similarly, the price-to-earnings ratio — which measures a company’s share value relative to its per-share income — is still 65pc down from its peak, he said, implying that there’s still room for further index gains owing to low valuations.

As a result, the KSE-100 index closed at 55,391.37 points after gaining 1,129.94 points or 2.08pc from the preceding session. The overall trading volume increased 32.7pc to 640.8 million shares. The traded value increased 5pc to Rs21.1bn on a day-on-day basis.

Stocks contributing significantly to the traded volume included Cnergyico PK Ltd (103.4m shares), Hum Network Ltd (42.4m shares), Pakistan Refinery Ltd (31m shares), K-Electric Ltd (26.4m shares) and WorldCall Telecom Ltd (25.1m shares).

Companies registering the biggest increases in their share prices in absolute terms were Pakistan Tobacco Company Ltd (Rs49), Arch­roma Pakistan Ltd (Rs30.86), Faisal Spinning Mills Ltd (Rs25.10), Pak Suzuki Motor Company Ltd (Rs24.30) and ZIL Ltd (Rs17.36).

Companies registering the biggest decreases in their share prices in absolute terms were Rafhan Maize Products Company Ltd (Rs36.67), Gadoon Textile Mills Ltd (Rs8.90), Fazal Cloth Mills Ltd (Rs7.28), Philip Morris Pakistan Ltd (Rs7) and Shahmurad Sugar Mills Ltd (Rs5.19).

Foreign investors were net buyers as they purchased shares worth $4.34m.

Published in Dawn, November 11th, 2023

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