KSE-100 index reclaims 114,000-point mark

Pakistan Stock Exchange (PSX) on Friday enjoyed a robust rally that propelled the KSE-100 index higher by over 1,000 points to well above 114,000 as banking and cement sectors led gains on the back of investor optimism.The market rebounded from last month’s correction, fueled by speculation about corporate earnings and the government’s revised contracts with independent power producers (IPPs).Market analysts pointed to the State Bank of Pakistan’s (SBP) signals about further rate cuts, the declininginflation and a stable rupee as key factors bolstering sentiment. The index had initially hit the all-time high of 117,587 points in January but settled lower amid fluctuations, closing the month with a marginal decline of 0.8%.Meanwhile, foreign investors offloaded shares worth $14.6 million, primarily in fertiliser, banking and food sectors while selective buying was noted in cement and telecom stocks. The IPO market is heating up as Zarea Limited is set to raise Rs1 billion in February through a book-building process.”Stocks were bullish led by across-the-board activity on investor speculation in the earnings season,” said Arif Habib Corp MD Ahsan Mehanti.The revision of contracts with 14 IPPs, surging global crude oil prices and strong earnings in banking and cement sectors impacted sentiment, he said, adding that the SBP’s hint at further rate cuts amid thin inflation, rupee stability and falling government bond yields played the role. of catalysts in the surge at the PSX.At the close of trading, the benchmark KSE-100 index recorded a rise of 1,049.33 points, or 0.93%, and settled at 114,255.73.Arif Habib Limited (AHL) wrote in its report that the market was trending back towards the higher end of its current range, between 112,000 and 115,500, with the index reaching a high of 115,100.On KSE-100, 61 shares increased in value while 36 declined. Primary contributors to the gains were UBL (+4.74%), Lucky Cement (+6.02%) and NBP (+10%). Conversely, Mari Petroleum (-1.59%), Fauji Fertilizer Company (-0.23%) and Mehmood Textile Mills (-4.19%) were the biggest drags, it said.An IMF mission is anticipated to arrive around late February or early March to conduct the first review of the $7 billion Extended Fund Facility. Technical analysis suggests that the market has likely found a bottom and is poised to potentially overcome resistance levels in the coming week, AHL added.Topline Securities wrote in its review that the KSE-100 index, while continuing its previous day’s momentum, gained 1,049 points. “This positivity can be attributed to the recent decline in the market that created room for value investors to buy at dips,” it said.The rally was led by the banking sector as it closed higher by 2.2%. The top positive contribution came from UBL, NBP, Bank AL Habib, Meezan Bank, Askari Bank and HBL, which cumulatively contributed 621 points.Topline pointed out that Lucky Cement continued to garner investor interest after the result announcement where it posted 2QFY25 earnings per share of Rs73.17, up 22% year-on-year and 20% quarter-on-quarter, which was better than market expectations. Lucky closed 6% higher and contributed 191 points to the index.Overall trading volumes rose to 543.1 million shares compared with Thursday’s tally of 483.9 million. Total traded value stood at Rs27.97 billion. Shares of 454 companies were traded. Among these, 234 stocks closed higher, 164 declined and 56 remained unchanged.Cnergyico PK led the volumes chart with trading in 66.7 million shares, gaining Rs0.08 to close at Rs7.75. It was followed by WorldCall Telecom with 37.8 million shares, falling Rs0.06 to close at Rs1.64 and Bank Makramah with 18.5 million shares, rising Rs0.04 to close at Rs3.75.During the day, foreign investors were net sellers of shares worth Rs163.6 million, according to NCCPL.