Pak-US deal optimism drives PSX to peak
Ahsan Mehanti of Arif Habib Corp commented that stocks closed at a new all-time high amid strong financial results and speculation about a positive outcome of finer details of US investment under the Pakistan-US trade deal. Record remittances of $3.2 billion in July, rupee stability and expectations of a surge in exports due to the India-US tariff conflict drove the bullish close at the PSX, said Mehanti.
In its review, Topline Securities said that bulls tightened their grip as the KSE-100 index rocketed to the intra-day high of 1,622 points before settling at 146,930, up a solid 1,547 points. Sentiment surged after reports of US firms gearing up to invest in Pakistan's energy sector, further reinforced by better-than-expected corporate results.
Market giants Mari Petroleum, Bank AL Habib, Oil and Gas Development Company (OGDC), Meezan Bank and MCB Bank dominated the rally, together pumping 959 points into the index and reaffirming the market's risk-on mood, added Topline.
In its commentary, Arif Habib Limited (AHL) stated that the weekly draw at 146,800-147,000 was hit on Monday, with the day's high at 147,005 points.
Some 67 shares rose while 32 fell, with Mari Petroleum (+7.68%), Bank AL Habib (+4.22%) and OGDC (+2.44%) contributing the most to index gains. On the flip side, Engro Fertilisers (-1%), Systems Limited (-0.79%) and Engro Holdings (-0.47%) were the biggest drags, mentioned AHL.
Among corporate results, Mari Petroleum reported FY25 earnings per share (EPS) of Rs54.25, a decrease of 16% year-on-year (YoY), and dividend per share of Rs21.70. Fauji Cement declared FY25 EPS of Rs5.43, an increase of 62% YoY, and dividend per share of Rs1.25.
Meanwhile, Attock Refinery posted FY25 EPS of Rs112.3, down 53% YoY, and dividend per share of Rs10. Lucky Cement reported FY25 EPS of Rs52.53, up 19% YoY, and dividend per share of Rs4.
AHL noted that National Refinery (+10%) revalued the surplus of leasehold land by Rs46 billion in its financial accounts, according to an exchange filing. Its FY25 net loss per share narrowed to Rs185.9 vs Rs197.5.
JS Global analyst Muhammad Hasan Ather remarked that the KSE-100 index soared 1,547 points as bullish momentum prevailed, boosted by strong buying across banking, oil & gas, auto and refinery sectors.
The surge was underpinned by robust investor confidence, favourable corporate earnings and optimism fuelled by economic stabilisation measures and trade expectations, he said.
AHL Deputy Head of Trading Ali Najib said that bulls were marching towards 150,000 with full excitement as KSE-100 breached the 146,000 mark and closed just below 147,000 (+1,547 points).
Sentiment remained strong in the backdrop of Pakistan-US trade deal. The investor community is anticipating that the visit of army chief could lead to further favourable terms for Pakistani exports to the US, he said. The E&P sector led the day in the wake of news regarding circular debt resolution, which is likely to be announced soon, added Najib.
Overall trading volumes increased to 611.2 million shares compared with Friday's tally of 548.1 million. Traded value decreased to Rs44 billion as compared to Rs45.5 billion in the previous session. Shares of 479 companies were traded. Of these, 242 stocks closed higher, 209 dropped and 28 remained unchanged.
Lotte Chemical was the volume leader with trading in 73.3 million shares, gaining Rs0.54 to close at Rs21.8. It was followed by Siddiqsons Tin Plate with 21.2 million shares, gaining Rs0.51 to close at Rs7.55 and Invest Bank with 20 million shares, gaining Rs0.8 to close at Rs8.68. Foreign investors sold shares worth Rs115 million, the National Clearing Company reported.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
10 hours ago
- Business Recorder
US to explore cooperation with Pakistan on critical minerals, hydrocarbons
WASHINGTON: Secretary of State Marco Rubio said Washington looked forward to exploring cooperation with Pakistan on critical minerals and hydrocarbons, with his comments coming in a statement issued by the State Department on Pakistan's Independence Day. Why it's important Washington and Islamabad hailed a trade deal last month, which Pakistan said would result in lower tariffs and increased investment. Pakistan's Commerce Minister Jam Kamal has said Islamabad will offer U.S. businesses opportunities to invest in mining projects primarily in the southwestern Balochistan province through joint ventures with local companies, providing concessions such as lease grants. Barrick not acting as facilitator between Pakistan, Saudi Arabia for Reko Diq project, says CEO The province is home to key mining projects, including Reko Diq, run by mining firm Barrick Gold and believed to be one of the world's largest gold and copper mines. Key quotes 'We look forward to exploring new areas of economic cooperation, including critical minerals and hydrocarbons, and fostering dynamic business partnerships,' Rubio said late on Wednesday. US market: Pakistan exporters poised to gain notable competitive edge 'The United States deeply appreciates Pakistan's engagement on counterterrorism and trade.' Context Before President Donald Trump's administration, Islamabad's relationship with Washington had cooled in recent years, as the U.S. drew closer to Pakistan's traditional adversary India to counter China's rise, among other factors. Washington also resented Islamabad over Afghanistan, especially under former President Joe Biden's administration, which oversaw a chaotic withdrawal from Afghanistan and the takeover of the country by the Taliban insurgency that Washington accused Islamabad of backing. Pakistan denied the charge. In recent months, Washington's ties with Islamabad have improved. Trump took credit for a ceasefire between India and Pakistan after the Asian neighbors engaged in hostilities in May following an April attack in Indian Illegally Occupied Jammu and Kashmir (IIOJK). Pakistan praised Trump while India maintained that New Delhi and Islamabad should resolve their issues directly without outside involvement. Counterterrorism talks The U.S. and Pakistan held the latest round of counterterrorism talks in Islamabad on Tuesday. Washington has designated separatist militant group Balochistan Liberation Army as a 'foreign terrorist organization.' 'The US-Pakistan counterterrorism dialogue joint statement is one of the most positive and effusive I've seen from these two countries on CT for quite a few years,' Michael Kugelman, a Washington-based South Asia analyst and writer for Foreign Policy magazine, said.
Business Recorder
14 hours ago
- Business Recorder
India and China eye border trade resumption
NEW DELHI: India and China are discussing resuming border trade five years after it was halted, foreign ministry officials on both sides have said, as US tariffs disrupt the global trade order. Past trade across the icy and high-altitude Himalayan border passes between the neighbours was usually small in volume, but any resumption is significant for its symbolism. The two major economic powers have long competed for strategic influence across South Asia. But caught in global trade and geopolitical turbulence triggered by US President Donald Trump's tariff regime, the countries have moved to mend ties. Chinese Foreign Minister Wang Yi is expected for talks in New Delhi on Monday, according to Indian media, after his counterpart Subrahmanyam Jaishankar visited Beijing in July. That, as well as agreements to resume direct flights and issue tourist visas, has been seen as an effort to rebuild a relationship damaged after a deadly border clash in 2020 between their nations' troops. 'For a long time, China-India border trade cooperation has played an important role in improving the lives of people living along the border,' China's foreign ministry said in a statement to AFP on Thursday. India's Modi to visit China for first time in 7 years as tensions with US rise It added that the two sides have 'reached a consensus on cross-border exchanges and cooperation, including resumption of border trade'. New Delhi's junior foreign minister, Kirti Vardhan Singh, told parliament last week that 'India has engaged with the Chinese side to facilitate the resumption of border trade'. No restart date was given by either side. Successive US administrations have seen India as a longstanding ally with like-minded interests when it comes to China. India is part of the Quad security alliance with the United States, as well as Australia and Japan. But ties between New Delhi and Washington have been strained by Trump's ultimatum for India to end its purchases of Russian oil, a key source of revenue for Moscow as it wages its military offensive in Ukraine. The United States will double new import tariffs on India from 25 percent to 50 percent by August 27 if New Delhi does not switch crude suppliers. Prime Minister Narendra Modi, according to Indian media, might also visit China in late August. It would be Modi's first visit since 2018, although it has not been confirmed officially. Beijing has said that 'China welcomes Prime Minister Modi' for the Shanghai Cooperation Organisation summit opening on August 31.
Express Tribune
16 hours ago
- Express Tribune
Rupee extends rally with gains of 20 paisa
The Pakistani rupee extended its gains against the US dollar on Wednesday, rising 20 paisa, or 0.07%, in the inter-bank market. The currency closed at 282.22 compared to the previous day's closing level of 282.42. It was the rupee's fifth consecutive day of appreciation, driven by improved market sentiment amid an ongoing crackdown on illegal currency dealers and smugglers. Last week, a court handed five-year prison terms to three illegal currency traders and fined Rs1 million each for engaging in unlawful foreign exchange operations. In global trade, the US dollar slipped after soft US inflation data reinforced expectations of a Federal Reserve rate cut next month. Political developments in Washington, including President Donald Trump's moves to tighten control over US institutions, also weighed on the greenback. The dollar index hit a more than two-week low, making bullion cheaper for overseas buyers, while the yield on the benchmark 10-year Treasury note edged lower, according to Reuters. Meanwhile, gold prices in Pakistan inched lower, diverging from the international trend, where the metal gained on a weaker US dollar and falling Treasury yields. Mild US inflation data reinforced expectations of a Federal Reserve rate cut in September, with markets also factoring in the possibility of further easing later this year. In the local market, the price of gold per tola fell Rs200 to Rs358,100, according to the All Pakistan Sarafa Gems and Jewellers Association. The rate for 10 grams declined Rs171 to Rs307,013. On Tuesday, gold had dropped by Rs500 to Rs358,300 per tola. Interactive Commodities Director Adnan Agar said global gold prices were moving within a narrow range, with Wednesday's high at $3,370 per ounce and low at $3,342. 'The market was trading at $3,355 and waiting for fresh triggers,' he noted. Agar pointed to the upcoming geopolitical events, including a Russia-US-Ukraine summit this weekend, as potential drivers. 'If the summit fails, gold prices are likely to rise. A breakthrough could push prices lower,' he said. Agar added that markets were also looking ahead to the US Federal Reserve's policy decision next month, where there was a strong likelihood of an interest rate cut, a move that could further influence gold's direction. Spot gold gained 0.4% to $3,357.59 per ounce by 12:10 pm ET (1610 GMT). US gold futures for December delivery rose 0.3% to $3,408.50. 'Gold is buoyant on heightened expectations of a September Fed rate cut, following benign inflation data and July's weak non-farm payrolls,' said Nikos Tzabouras, senior market analyst at
