Karachi, August 8, 2024 – The Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index soared by 760 points on Thursday, driven primarily by the better-than-expected financial results of Mari Petroleum Company Limited.
The KSE-100 index closed at 77,874 points, up from the previous day’s closing of 77,114 points.
Analysts at Topline Securities noted that the trading day began with mixed movements as investors showed selective interest in cyclical sector stocks, particularly after a favorable Treasury bills (T-bills) auction on Wednesday. The auction saw a more significant-than-expected drop in yields across all tenures, which drew attention to stocks in the cement, steel, and automobile sectors.
However, the real excitement came with Mari Petroleum’s surprise earnings report. The company reported an Earnings Per Share (EPS) of Rs 192.34 for the fourth quarter of FY24, marking a 62% year-on-year (YoY) increase and an 82% quarter-on-quarter (QoQ) jump. For the full fiscal year, Mari Petroleum posted an EPS of Rs 579.36, a 38% rise YoY. The results exceeded industry expectations, especially with the announcement of a final cash dividend of Rs 134 per share for 4QFY24, bringing the total dividend for the year to Rs 232 per share.
Adding to the surprise was Mari Petroleum’s announcement of an 800% bonus share issue (eight shares for every one share held), which significantly boosted investor sentiment. The KSE-100 Index hit its upper circuit limit within minutes of the announcement, becoming the day’s highest positive contributor by adding 221 points to the KSE-100 Index.
Following Mari Petroleum’s impressive performance, other stocks in the same sector, including Oil and Gas Development Company (OGDC) and Pakistan Petroleum Limited (PPL), also saw significant gains. OGDC and PPL contributed 193 points and 74 points to the index, respectively, further supporting the overall market rally.
The day ended with over 491 million shares traded on the PSX, with the total trading value reaching Rs 15.8 billion. KOSM led the volumes chart with nearly 94 million shares traded.
The unexpected strength of Mari Petroleum’s results and the subsequent market response highlighted the company’s pivotal role in driving market sentiment. The surge in the KSE-100 Index reflects the positive investor outlook, buoyed by robust corporate earnings and favorable macroeconomic developments.
