Karachi, October 20, 2023 – Pakistan stocks witnessed a robust surge on Friday, with the benchmark KSE-100 index of the Pakistan Stock Exchange (PSX) gaining 367 points.
The index closed at 50,732 points, marking a significant uptick from the previous day’s closing at 50,365 points.
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Analysts at Topline Securities Limited attributed the KSE-100 Index’s extended gains to the positive financial announcements made during the ongoing result session. These strong corporate earnings reports have continued to pique investor interest, resulting in the benchmark index gaining 0.73 percent and closing at 50,732 points.
Furthermore, the recent Treasury bill auction held earlier in the week contributed to the market’s buoyant performance. Yields declined in the range of 30 to 45 basis points, providing additional stimulus to the stock market.
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Two prominent companies, PSO and MUREB, unveiled their 1QFY24 results on the same day. PSO posted an impressive Earnings Per Share (EPS) of Rs. 46.62 for the quarter, surpassing industry expectations. On the other hand, MUREB reported an EPS of Rs. 21.35, representing a significant 96% increase on a quarter-on-quarter basis. Additionally, MUREB declared an interim cash dividend of Rs. 7.5, which led to a surge in its stock price, touching its upper circuit during the trading session.
The major contributors to the index’s positive performance included HUBC, FFC, BAHL, EFERT, and HBL, collectively adding 267 points to the index. However, there were a few stocks such as PAKT, UNITY, OGDC, NESTLE, and KEL that experienced declines, which had a minor negative impact, weighing down the index by -62 points.
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The renewed investor confidence in the market was clearly visible, with robust participation observed throughout the day. The trading volume reached 429 million shares, while the total traded value amounted to Rs. 14.6 billion. This level of investor activity demonstrates the growing optimism and interest in Pakistan’s stock market, driven by strong corporate results and favorable market conditions.
