KARACHI: Robust export numbers, coupled with falling cut-off yields on T-bills, fuelled economic optimism among equity investors, propelling the benchmark KSE 100 index to a record high, closing above 82,500 on Thursday.

However, foreign investors continued offloading their holdings amid growing geopolitical tensions.

“The index reached an all-time high due to several triggers,” explained Ahsan Mehanti of Arif Habib Corporation.

He pointed out that the massive drop in T-bill yields, the increase in foreign exchange reserves following the first IMF tranche inflow under the new $7 billion loan, and a more than 14 per cent rise in July-September all contributed to boosting investor confidence in the country’s economic performance.

On the other hand, surging global crude oil prices, institutional interest ahead of quarter earnings season, and rupee stability also aided the rally.

Topline Securities Ltd said the arrival of Malaysian Prime Minister Dato’ Seri Anwar Ibrahim for a three-day visit to enhance the strategic economic partnership was a positive trigger.

The bulls staged a third straight rally, propelling the index to the highest-ever level at 82,721 after adding 754 points or 0.92 per cent day-on-day.

Key drivers of the index were Fauji Fertiliser, Engro Fertiliser, Pakistan Petroleum, Bank Alfalah, and Fauji Fertiliser Bin Qasim, collectively adding 615 points. Conversely, Mari Petroleum, TRG Pakistan, MCB Bank, and Attock Refinery shaved off 223 points.

The trading volume was down 11.38pc to 319.87 million shares while the traded value rose 6.64pc to Rs16.41bn day-on-day.

Stocks contributing significantly to the traded volume included WorldCall Telecom (23.24m shares), Fauji Cement (21.62m shares), Fauji Fertiliser Bin Qasim (15.26m shares), Secure Logistics Growth (11.93m shares) and Flying Cement (10.79m shares).

The shares registering the most significant increases in their prices in absolute terms were Unilever Pakistan Foods Ltd (Rs204.20), Hoechst Pakistan Ltd (Rs89.97), and Service Industries Ltd (Rs59.23).

Foreign investors remained net sellers as they sold shares worth $3.11m. However, mutual funds and banks picked shares worth $4.85m and $1.46m, respectively.

Published in Dawn, October 4th, 2024