The benchmark KSE-100 index at the Pakistan Stock Exchange (PSX) closed the week at a new record high on Friday to settle at 134,300 points as bullish sentiment prevailed amid robust corporate results and continued institutional inflows.
Investor activity was particularly fueled by strong earnings of UBL, which posted a 99% year-on-year (YoY) surge in 1HCY25 earnings per share to Rs26.07 and declared a higher-than-expected dividend of Rs19 per share.
Market breadth remained positive, with 55 stocks advancing and 45 declining. UBL (+2.4%), Hubco (+1.6%) and Millat Tractors (+2.76%) were the top contributors to the day's gains, collectively lifting the index by over 300 points. Meanwhile, pressure in select banking names such as Bank AL Habib (-3.3%), MCB Bank (-1.04%) and HBL (-1.22%) limited the upside.
At close, the benchmark KSE-100 index posted a gain of 517.42 points, or 0.39%, and settled at 134,299.77. Trading activity remained strong, with volumes reaching 765 million shares and a traded value of Rs40 billion.
Analysts at Topline Securities attributed the day's momentum to rising mutual fund allocations to equities, shifting away from fixed income, as shown in the National Clearing Company data.
With macroeconomic indicators improving and remittances hitting a record $38.3 billion, sentiment continued to remain bullish, setting the stage for a potential test of 136,000 in the sessions ahead.
Traded value-wise, UBL (Rs2.32 billion), DG Khan Cement (Rs1.64 billion), Attock Refinery (Rs1.61 billion), Hubco (Rs1.44 billion), The Bank of Punjab (Rs1.24 billion) and Maple Leaf Cement (Rs1.19 billion) dominated the trading activity, Topline said.
"Stocks closed at a new all-time high in the earnings season rally as investors weighed surging forex reserves that reached $20 billion and upbeat auto sales data, which showed a 38% YoY growth for FY25," said Arif Habib Corp MD Ahsan Mehanti.
The revision in development spending to Rs1.05 trillion for FY25 and record remittances played the role of catalysts for the new peak at the PSX, he added.
Arif Habib Limited (AHL) wrote in its report that the KSE-100 index enjoyed another solid week, gaining 1.8% week-on-week, on the back of strong corporate earnings and investor interest.
On Friday, 55 stocks advanced while 45 declined, where UBL (+2.4%), Hubco (+1.6%) and Millat Tractors (+2.76%) contributed the most to index gains. In contrast, Bank AL Habib (-3.3%), MCB Bank (-1.04%) and HBL (-1.22%) were the biggest drags.
UBL announced 1HCY25 earnings per share of Rs26.07, up 99% YoY, and a dividend payout of Rs19 per share. Earnings were in line with expectations while the payout exceeded estimates.
For the coming week, technical indicators suggest support at around 132,000, with a potential upside towards 136,000, AHL said.
Overall trading volumes were recorded at 765.1 million shares, compared with the previous session's tally of 941.7 million. The value of shares traded during the day was Rs40.2 billion.
Shares of 477 companies were traded. Of these, 220 stocks closed higher, 228 fell and 29 remained unchanged.
The Bank of Punjab was the volume leader with trading in 94.1 million shares, gaining Rs0.08 to close at Rs13.08. It was followed by Aisha Steel Mills with 25.1 million shares, gaining Rs0.44 to close at Rs12.11 and Kohinoor Spinning Mills with 23.6 million shares, losing Rs0.20 to close at Rs6.69. Foreign investors sold shares worth Rs350 million, the National Clearing Company reported.
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