PSX rises over 1,050 points on robust results

The Pakistan Stock Exchange (PSX) on Monday closed bullish as the benchmark KSE-100 index surged over 1,050 points amid speculation ahead of major corporate earnings announcements in the ongoing week.

Growing expectations about the resolution of circular debt crisis and China debt rollover were the key developments, which took the index to the day's high. Robust quarterly results, unveiled by key players such as Meezan Bank and Sazgar Engineering, further energised the market.

Ahsan Mehanti of Arif Habib Corp commented that stocks closed bullish, led by across-the-board activity, amid speculation ahead of major earnings announcements in the current week. The government's deliberations on solving the circular debt crisis and China debt rollover supported the index's close near session highs.

Mehanti added that the expected receipt of IMF's tranche under the Extended Fund Facility (EFF) and the Resilience and Sustainability Facility (RSF) next month, alongside potential monetary easing amid thin inflation, played the role of catalysts in bullish close at the PSX.

At the end of trading, the benchmark KSE-100 index recorded an increase of 1,067.79 points, or 0.91%, and settled at 118,383.38.

In its review, Topline Securities noted that bulls asserted their dominance in Monday's trading session, where the benchmark index surged to the intra-day high of 1,511 points. It closed at 118,383, marking a strong gain of 1,068 points, or 0.91%.

The rally was largely driven by better-than-expected corporate earnings, which bolstered investor sentiment and sparked widespread buying, it elaborated.

Among the key highlights were the impressive results announced by Meezan Bank and Sazgar Engineering Works. Both companies beat expectations and emerged as the stars of the day, driving significant investor interest and uplifting the broader market tone.

Topline added that heavyweight stocks played a crucial role in powering the index higher, with Meezan Bank, MCB Bank, UBL, Sui Northern Gas Pipelines and Hub Power contributing 827 points.

In its report, Arif Habib Limited (AHL) commented that prices fully filled the "Tariff Gap" with the index reaching the day's high above 118,800.

Some 58 shares rose while 38 fell, with Meezan Bank (+9.13%), MCB Bank (+4.41%) and UBL (+1.72%) contributing the most to the index gains. On the flip side, Mari Petroleum (-1.45%), Engro Fertilisers (-1.78%) and HBL (-1.74%) were the biggest drags, it said.

Among corporate results, Meezan Bank announced 1QCY25 earnings per share (EPS) of Rs12.3, a decrease of 11% year-on-year, and dividend of Rs7 per share. The earnings contracted due to a dip in net interest income and higher operational expenditures.

Additionally, AHL said, Sazgar Engineering Works (+2.73%) announced 9MFY25 EPS of Rs212.66, an increase of 189% year-on-year. The company declared a cash dividend of Rs12 per share for 3QFY25, taking the payout to Rs32 per share for 9MFY25.

JS Global analyst Muhammad Hasan Ather remarked that bulls dominated the trading floor as investors capitalised on attractive valuations. The majority of buying was seen in banking stocks, where Meezan Bank, MCB Bank and UBL alone contributed 648 points.

"Looking ahead, we expect some corporate results-based rally while budget-related updates and the upcoming monetary policy will also drive market sentiment. Therefore, investors are advised to adopt a buy-on-dips stance, with a focus on oil and gas, automobile and cement sectors," Ather added.

Overall trading volumes increased to 672.4 million shares compared with Friday's tally of 425.1 million. The value of shares traded during the day was Rs36.4 billion. Shares of 451 companies were traded. Of these, 252 stocks closed higher, 158 fell and 41 remained unchanged.

Cnergyico PK was the volume leader with trading in 103 million shares, gaining Rs0.01 to close at Rs8.55. It was followed by Power Cement with 62.6 million shares, gaining Rs1.23 to close at Rs13.54 and The Bank of Punjab with 42.6 million shares, gaining Rs0.25 to close at Rs11.42. Foreign investors sold shares worth Rs313.8 million, the National Clearing Company said.