Led by strong corporate results, the Pakistan Stock Exchange’s (PSX) benchmark KSE-100 Index gained over 750 points during trading on Thursday.
For the most part of the trading session, the index remained largely flat. However, sentiment improved amid the announcement of financial results by market heavyweights, driving the index up.
At close, the benchmark index settled at 77,874.22, up by 759.73 points or 0.99%.
The dramatic turn came as MARI announced its financial results, conveying a hefty amount of bonus shares and dividend. The announcement alone gave impetus to other companies’ share prices with investors feeling a trend of impressive results.
Buying was then witnessed in key sectors including cement, commercial banks, oil and gas exploration companies and OMCs. Index-heavy stocks including OGDCL, MARI, MEBL, PPL, HBL and NBP traded in the green.
“The buying is largely results driven, coming on the back of strong financial performance from index heavyweights including Meezan Bank and Mari Petroleum,” Sana Tawfik, Head of Research at Arif Habib Limited (AHL), told media.
Meezan Bank, the country’s largest Islamic bank, posted consolidated earnings of Rs26.89 billion for the second quarter that ended June 30, 2024, up nearly 55% from the profit-after-tax Rs17.39 billion in the same period of the preceding year.
Meanwhile, MARI posted a profit-after-tax (PAT) of Rs77.28 billion in 2024, up nearly 38% year-on-year (YoY), compared to PAT of Rs56.13 billion in the same period of the previous year.
On Wednesday, PSX had witnessed a mixed trend and after moving in both directions, closed in the negative zone as the investors opted to book profit on available margins.
Globally, China stocks rose slightly on Thursday, bucking weakness in broader Asian markets, as some investors likely saw the Chinese market as a safe haven despite a faltering economic recovery.
Tech shares led a selloff in stock markets around Asia, while the yen and US bonds rebounded, as global investors struggled to find their footing in a wild week for markets.
Around the region, MSCI’s Asia ex-Japan stock index was weaker by 0.38%, while Japan’s Nikkei index closed down 0.74%.
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