Moaaz Manzoor

The Pakistan Stock Exchange (PSX) ended the week on a positive note, with the benchmark KSE-100 Index gaining 996 points, or 0.6% week-on-week, to close at a record high of 172,401 points, driven by improving investor sentiment following recent monetary easing and the successful privatization of Pakistan International Airlines.

The KSE-100 Index rose from 171,404 points last week to 172,401, while the KSE-30 Index advanced 0.6% week-on-week to 52,734 points. Market capitalization increased marginally to PKR19,463 billion (USD 69.47 billion) from PKR19,457 billion (USD 69.43 billion) in the previous week.

Sector-wise performance remained mixed but broadly positive. According to AKD Securities, the Property, Technology, Modaraba, Paper and Board, and Fertilizer sectors emerged as top gainers, posting weekly increases of 11.3%, 3.4%, 2.0%, 1.5%, and 1.4%, respectively. On the downside, the Investment Banks, Woollen, Textile Weaving, Vanaspati, and Leasing sectors recorded declines of 9.2%, 3.3%, 2.8%, 2.5%, and 2.5%, respectively.

On a company basis, Javedan Corporation (JVDC) led the gainers with a 19.4% rise, followed by Pakistan Telecommunication Company (PTC) up 16.7%, Kohat Cement (KOHC) up 10.9%, Bank of Punjab (BOP) up 8.3%, and MEHT up 7.5%. Meanwhile, YOUW and RMPL both declined 8.5%, UNITY fell 7.0%, SSGC slipped 6.9%, and GADT shed 6.4% during the week.

Market participation softened slightly, with average daily traded volume declining 3.5% week-on-week to 1.1 billion shares from 1.2 billion shares in the previous week. AKD Securities noted that the market experienced some volatility due to year-end portfolio adjustments, although overall sentiment remained positive following the 50-basis-point policy rate cut announced by the Monetary Policy Committee.

Meanwhile, Topline Securities attributed the 0.58% week-on-week rise in the KSE-100 Index to the successful privatization of Pakistan International Airlines at PKR135 billion (USD480 million), describing it as one of the largest privatization transactions in the country’s history. The brokerage also highlighted that during the latest T-bill auction, the government raised PKR883 billion against a target of PKR600 billion and maturities of PKR471 billion, with yields declining in the range of 36 to 72 basis points.

Commenting on market performance, Ali Najib, Deputy Head of Trading at Arif Habib Limited, said the PSX closed strongly as the KSE-100 Index ended at a record 172,401 points, gaining 1,571 points or 0.92%, as investors rebuilt positions following the conclusion of the rollover week.

Looking ahead, AKD Securities expects positive momentum in the KSE-100 Index to continue, supported by successful disbursements under the Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF), a supportive monetary environment, limited flood-related disruptions, and improving global credit perceptions.

The brokerage noted that the index is currently trading at a multiple of 8.0x earnings while offering a dividend yield of 6.5%, with sentiment further bolstered by expectations of foreign inflows amid improving relations with the United States and Saudi Arabia.

Credit: INP-WealthPk