Stocks cheer Pakistan-US energy agreement
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The Pakistan Stock Exchange (PSX) ended on a strong note on Thursday, fuelled by investor enthusiasm following news of an energy agreement between Pakistan and the US. The benchmark KSE-100 index moved higher by 978.17 points, or 0.71%, and settled at 139,390.42.
Market participants welcomed the breakthrough, which included reduced trade barriers for Pakistan and a strategic partnership aimed at unlocking the country's untapped oil potential. It sparked a wave of buying in key sectors, led by exploration and production (E&P) stocks.
JS Global analyst Muhammad Hasan Ather commented that Thursday's rally was driven by the successful trade agreement between Pakistan and the United States, which boosted investor sentiment. "The deal promises rationalisation of tariffs on exports and increased US investment in sectors like energy, IT and infrastructure," he said.
Topline Securities, in its review, wrote that bulls stampeded through July, driving the KSE-100 index up by 11% month-on-month (MoM) to a record-shattering close at 139,390 points.
Market euphoria was fuelled by the federal cabinet's green light to the largest-ever financial restructuring plan, aimed at retiring Rs1.275 trillion worth of circular debt over six years, coupled with the State Bank's steady hand on policy rate, keeping investor confidence intact, it said.
Adding fuel to the rally was a slew of positive macro triggers. The Consumer Price Index for June eased to 3.24%, signalling price stability ahead. Also, Pakistan posted its first annual current account surplus in 14 years, which came in at $2.1 billion. Remittances sent home by overseas Pakistanis broke record too, reaching $38.3 billion in FY25, with June inflows alone at $3.4 billion (up 8% YoY).
Car sales in June roared to 21,773 units, marking a 64% year-on-year (YoY) and 47% MoM surge, reflecting resurgence in consumer demand, Topline mentioned.
KTrade Securities remarked that stocks closed on a bullish note as energy names led the rally. The KSE-100 index swung between intra-day low of 139,084 and high of 140,215, ultimately advancing 978 points day-on-day to close at 139,390.
The rally followed the announcement of a successful Pakistan-US trade deal, which includes US support for exploiting local oil reserves, signalling potential investment in Pakistan's energy sector, it said.
Arif Habib Limited (AHL) observed that trading above 140k continued to cap gains for the KSE-100. Some 60 shares rose while 39 fell, with Systems Limited (+7.5%), OGDC (+3.66%) and Pakistan Oilfields (+5.02%) contributing the most to index gains. On the other hand, Fauji Fertiliser (-1.41%), Bank Alfalah (-2.1%) and Engro Fertilisers (-0.73%) were the biggest drags.
AHL said that oil names were all well bid and saw the most traded value following comments from US President Donald Trump that his administration had struck a deal with Pakistan, under which Washington would work with Islamabad on developing oil reserves. However, there was no update on tariffs, which the market awaited.
Among corporate news, Bank Alfalah (-2.33%) announced first-half earnings per share (EPS) of Rs9.55, down 31% YoY, along with a dividend of Rs5 per share. Habib Bank (-0.58%) announced 1HCY25 EPS of Rs23.44, up 16% YoY, and declared a dividend of Rs9.
Heading into the last session of the week, the KSE-100 was up 0.13% week-on-week, with the possibility of hitting 140.5k, AHL added.
Overall trading volumes increased to 577.3 million shares compared with Wednesday's tally of 425.8 million. Traded value stood at Rs36.3 billion. Shares of 483 companies were traded. Of these, 235 stocks closed higher, 215 fell and 33 remained unchanged.
The Bank of Punjab led volumes with trading in 83 million shares, rising Rs0.34 to close at Rs14.06. It was followed by Invest Bank with 37.2 million shares, gaining Rs0.23 to close at Rs8.99 and OGDC with 24.2 million shares, up Rs8.23 to close at Rs233.01. Foreign investors sold shares worth Rs146.7 million, the National Clearing Company reported.
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