Stocks rise amid record OGDC earnings

Investors stay cautious; govt weighs HSD margin cut to $30/barrel

KARACHI:

Pakistan Stock Exchange (PSX) closed the week modestly higher on Friday as the benchmark KSE-100 index gained almost 400 points to settle near 175,330. The rebound trimmed the week-on-week decline to 1.33% after a range-bound session in which investors largely stayed on the sidelines.

Arif Habib Limited (AHL), in its report, called it a modest recovery, where the KSE-100 closed 0.23% higher at 175,328.82, trimming the week-on-week decline to 1.33%. On the index, 60 stocks advanced and 38 declined. Meezan Bank, Bank AL Habib and Mari Energies made the largest positive contribution, while United Bank, Attock Refinery and Pakistan Services weighed heavily.

Market participants also absorbed two material developments. The federal government is reportedly considering a cut in high-speed diesel refining margins from the existing ceiling of $41.89 to $30 per barrel, a move that would compress refinery profitability.

AHL further noted that Oil & Gas Development Company posted a year-on-year jump of 3.1 times in the fourth-quarter FY26 earnings that hit Rs127.1 billion (EPS Rs29.55 versus Rs9.37), driven by higher oil prices, increased hydrocarbon output and a super-tax provision reversal. The company declared a Rs6-per-share dividend.

Topline Securities observed that the market remained range bound during the last trading session of the week, with the index moving between the intra-day high of 0.28% and low of 0.24%, before closing at 175,329, up 0.23%. The lacklustre activity was largely attributable to investors' preference to remain on the sidelines.

MEBL, BAHL, MARI, PPL, and OGDC were the top positive contributors, cumulatively adding 250 points to the index. Conversely, UBL, ATRL, PSEL, CNERGY, and FFC collectively dragged the index down by 212 points.

OGDC reported 4QFY26 earnings of Rs29.55/share, up nearly 3x YoY, supported by higher revenues and a Rs44 billion super-tax reversal. FY26 EPS increased 43% YoY to Rs56.35. The company announced a record FY26 dividend of Rs17/share. "Improved receivables recovery is expected to support future payouts," it said.

"We maintain a buy stance on OGDC, which is currently trading at an estimated FY27E/FY28F price-to-earnings ratio of 6.1x/5.2x," said Topline. In terms of traded value, OGDC (Rs2.82 billion), CNERGY (Rs2.06 billion), PPL (Rs2 billion), ATRL (Rs1.4 billion), and MLCF (Rs1 billion) dominated market activity.

Overall trading volumes were recorded at 874 million shares compared with the previous session's tally of 627 million. The value of shares traded during the day was Rs32.4 billion.

Shares of 496 companies were traded. Of these, 235 stocks closed higher, 218 fell, and 43 remained unchanged.

Cnergyico Pk was the volume leader with trading in 149 million shares, losing Rs0.54 to close at Rs13.92. It was followed by Tasdeeq Information with 132 million shares, gaining Rs0.42 to close at Rs4.36, and WorldCall Telecom with 79 million shares, remaining unchanged at Rs1.13. Foreign investors sold shares worth Rs198 million, the National Clearing Company reported.