Stocks surge 1,055 points during earnings season

KARACHI: Stocks started the week on a positive note where bulls showed a strong comeback. The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 index surged by 1,055 points amid a strong earnings outlook.

The KSE-100 index surged by 1,055.03 points, or 0.96 per cent, to 111,377.97 points, up from the 110,322.94 points recorded in the last session. The highest index of the day remained at 111,622.72 points, while the lowest level was recorded at 109,948.57 points.

Ahsan Mehanti, an analyst at Arif Habib Corp, said, “Stocks showed recovery in the earnings season rally at the PSX as investors weigh IMF targets met for primary budget surplus, provincial net revenue collection and cash surplus ahead of IMF review talks next month.”

He said that investor expectations over further SBP policy easing next month and Govt deliberations on privatisation of SOEs played a catalyst role in the bullish close at the PSX The KSE-30 index increased by 386.12 points or 1.12 per cent to 34,797.3 points against 34,411.19 points.

Traded shares increased by 116 million shares to 415.16 million shares from 299.678 million shares. The trading value rose to Rs23.947 billion from Rs15.624 billion. Market capital expanded to Rs13.773 trillion against Rs13.649 trillion. Of the 429 companies active in the session, 198 closed in green, 172 in red, and 59 remained unchanged.

Analyst Maaz Mulla at Topline Securities said the week commenced on a positive note as the bulls made a strong comeback, driving the index to an intraday high of 1,299 points before settling at 111,377 -- an increase of 1,055 points (0.96 per cent). “This surge was primarily fuelled by better-than-expected corporate earnings, which bolstered investor sentiment and renewed buying interest across key sectors.”

Adding to the optimism, the Zarea IPO book-building process received a positive response, further lifting market sentiment and attracting fresh capital inflows. The uptick was largely driven by strong performances from MARI, ENGROH, HUBC, PPL and ATRL, which collectively contributed 448 points to the index.

The highest increase was recorded in Unilever Pakistan Foods Limited, which rose by Rs787.49 to Rs23,232.28 per share, followed by Ghandhara Industries Limited, which increased by Rs57.88 to Rs636.70 per share. A significant decline was noted in Bata Pakistan Limited, which fell by Rs44.24 to Rs1,919 per share; Faisal Spinning Mills Limited followed it, which closed lower by Rs36.15 to Rs325.96 per share.

BO Punjab remained the volume leader with 55.937 million shares, which closed higher by 67 paisas to Rs10.28 per share. WorldCall Telecom, with 34.177 million shares, followed it, which closed flat at Rs1.53 per share.

Other significant turnover stocks included Cnergyico PK, Pak Refinery, Citi Pharma Ltd, National Bank XD, Pak Elektron, Sui South Gas, Treet Corp and Fauji Foods Ltd. In the futures market, 326 companies recorded trading, 210 of which increased, 106 decreased and 10 remained unchanged.