PSX up and running again with 970 points gain

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a robust performance today, Wednesday, with the KSE-100 index opening on a positive note. The index reached an intraday high of 1,096 points before closing at 80,461, marking an impressive gain of 970 points or 1.22%.

The bullish close at the PSX was driven by speculations ahead of the International Monetary Fund (IMF) executive board meeting on September 25, where approval of a $7 billion Extended Fund Facility (EFF) is anticipated, said Ahsan Mehanti Arif Habib Commodities.

Robust economic data, including surging remittances, rising exports, and a falling trade deficit, further fuelled investor confidence. Additionally, the Asian Development Bank’s (ADB) affirmation of a $2 billion annual concessional loan until 2027 and a strong rupee played a catalytic role in the market’s positive performance, he added.

Broad-based buying at the PSX was observed across blue-chip stocks, with heavyweights such as Mari Petroleum (MARI), Engro Fertilizers (EFERT), United Bank Limited (UBL), Meezan Bank Limited (MEBL), and Fauji Fertilizer Company (FFC) posting significant gains. These stocks collectively contributed to a notable 682-point rise in the index, according to Topline Securities.

In the cement sector, Pioneer Cement Limited (PIOC) declared its fiscal year 2024 results, reporting an earnings per share (EPS) of Rs 22.79 along with a cash dividend of Rs 10 per share. This announcement added to the positive sentiment in the market.

Trading volume exceeded 400.2 million shares, with a total turnover of Rs15.9 billion. Worldcall Telecom Limited (WTL) led the volumes chart, trading over 32.2 million shares.

On overall economic front, the Large Scale Manufacturing Index (LSMI) exhibited a positive year-on-year (YoY) growth of 2.4%, as per latest number of July 2024. This growth was driven by several key sectors.

Tobacco saw a remarkable increase of 90.2%, making it the highest contributor to the LSMI growth. On the other hand, automobiles sector experienced a significant rise of 72.0%, reflecting strong demand and production.

Similarly transport equipment category grew by 11.7%, indicating a healthy expansion in the production of transport-related machinery and equipment. Other manufacturing sector posted a growth of 10.7%, contributing positively to the overall LSMI.

However, not all sectors performed well. The top decliners included fabricated metal sector which saw a decline of 18.4%, indicating a reduction in the production of metal products. Electrical equipment witnessed a significant drop of 19.4% in this sector, reflecting lower production levels.

Furthermore, the furniture sector experienced the steepest decline, with a decrease of 55.8%, suggesting a substantial reduction in manufacturing activities.

On a month-on-month (MoM) basis, the LSMI for July 2024 was down by 2.1%. This decline indicates a slight contraction in manufacturing activities compared to the previous month, despite the positive year-on-year growth.