Bulls prevail at PSX amid better-than-expected corporate earnings

KARACHI: The Pakistan Stock Exchange (PSX) closed higher in the first session of the week, surging by 1,067.08 points (0.91 per cent) to settle at 118,383.38, amid speculation ahead of key corporate earnings announcements this week, analysts said.

The benchmark KSE-100 Index touched an intraday high of 1,511 points before closing near its session peak.

Stocks closed bullish across the board, supported by government deliberations on resolving the circular debt crisis and the anticipated rollover of Chinese debt, which helped the index maintain its upward momentum, said Ahsan Mehanti, CEO at Arif Habib Commodities.

“Imminent receipt of the IMF’s Extended Fund Facility (EFF) and Resilience and Sustainability Facility (RSF) tranches next month, along with expectations of monetary policy easing amid subdued inflation, played a catalytic role in today’s bullish close at the PSX,” Mehanti added.

“The benchmark index closed in the green, primarily driven by the ongoing results season. Earnings announcements sustained investor interest, triggering selective buying and supporting overall market momentum,” Ismail Iqbal Securities Research noted.

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Commercial banks, cement, and power generation and distribution sectors were the top contributors during the session, collectively adding 1,006 points to the index.

“The rally was largely fueled by better-than-expected corporate earnings, which bolstered investor sentiment and sparked widespread buying,” Topline Securities said.

Among the session’s highlights were the strong financial results posted by Meezan Bank Limited (MEBL) and Sazgar Engineering Works (SAZEW). Both companies outperformed expectations and emerged as the top performers of the day, attracting significant investor interest and boosting overall market sentiment.

Heavyweight stocks played a crucial role in driving the index upward, with MEBL, MCB, UBL, SNGP, and HUBC together contributing 827 points—underscoring their influence on market direction.

Market activity remained vibrant, with volumes surging to 670 million shares, while total market turnover reached Rs36.3 billion. Cnergyico PK Limited (CNERGY) led the volume chart with a remarkable 103 million shares traded, reflecting strong retail participation, Topline Securities added.