Investor sentiment surged due to strong traded volumes following a $3.4 billion loan rollover by China, which boosted foreign currency reserves to over $14 billion, enabling the country to meet the IMF’s reserves requirement.
Optimism about new policy reforms as well as Pakistan topping Global Emerging Market Rankings in Default Risk Reduction over the past year fuelled the bullish sentiment.
The benchmark index saw intra-day high of 1,369 points before closing a little lower with a gain of 1,248 points day-on-day.
According to Ahsan Mehanti of Arif Habib Corp, stocks hit a new all-time high at the year-end close, driven by record trade volumes following the rollover of $3.4 billion financing by China, which boosted foreign exchange reserves to over $14 billion, meeting the IMF’s June 30 target and supporting rupee stability.
Additionally, an anticipated cut in industrial power tariffs, alongside government’s deliberations on the privatisation of state-owned enterprises, and higher global equities played the role of catalysts in record close at the PSX, noted Mehanti.
In its review, Topline Securities commented that the local bourse wrapped up the fiscal year on a high note, carrying forward last week’s bullish momentum with another stellar performance. The benchmark KSE-100 index soared to intra-day high of 1,369 points before closing with a gain of 1,248 points (up 1%) and settling at 125,627.
The upbeat sentiment was fuelled by strong fiscal year-end flows and a significant external trigger-China’s rollover of $3.4 billion in commercial loans. This move helped Pakistan meet the IMF’s foreign reserves requirement of around $14 billion, reinforcing investor confidence, added Topline.
Heavyweights like Fauji Fertiliser Company, HBL, Bank AL Habib, UBL, Pakistan Oilfields, Faysal Bank and Pakgen Power led the charge, which collectively contributed +724 points to the index, stated the brokerage.
Market participation remained robust with a total of 1,141 million shares traded and an overall traded value of Rs35.1 billion. Volume leader WorldCall Telecom saw an impressive 139.9 million shares change hands.
In terms of traded value, top contributors included Pakistan Aluminium Beverage Cans (Rs1.50 billion), Faysal Bank (Rs1.22 billion), National Foods (Rs1.10 billion), Oil and Gas Development Company (Rs957.9 million), Pakistan Petroleum (Rs789.5 million), Pakistan State Oil (Rs736.8 million) and Fauji Fertiliser Company (Rs659.9 million).
With sentiment riding high and macro support in place, the market appears well-positioned as it steps into the new fiscal year, remarked Topline.