PSX Surges Above 117500 Due to Strong Earnings Outlook
Pakistan Stock Exchange (PSX) had a fantastic day on Friday, with the KSE-100 index climbing above 117,500 points. This upward trend was driven by exciting earnings forecasts for the banking and fertiliser industries.
Investors were particularly pleased about the expected generous returns from banking stocks, a significant 58% year-on-year increase in urea sales in December, and the possibility of a policy rate reduction by the State Bank of Pakistan (SBP).
The overall week saw a solid 5.6% increase, continuing the positive momentum from 2024 into the new year of 2025.
Ahsan Mehanti, the Managing Director of Arif Habib Corp, noted that the market closed on a high note thanks to the positive outlook in the banking and fertiliser sectors.
The KSE-100 index gained 467.33 points, settling at 117,586.98 at the close of trading. It’s worth mentioning that Arif Habib Limited (AHL) reported a robust 5.6% week-on-week increase for the index, carrying forward the bullish momentum.
Friday saw 47 stocks advancing and 52 declining. Engro Fertilisers, Fauji Fertiliser Company, and Dawood Hercules Corporation were among the top contributors to the index gains, while Lucky Cement, Systems Limited, and Pakistan Petroleum were the major decliners.
In corporate news, Dawood Hercules and Engro Corporation are undergoing a significant restructuring process. With regulatory and court approvals in place, Dawood Hercules will be split into two separate legal entities. One of these entities, now named Engro Holdings Limited, will include Dawood Hercules’ 40% stake in Engro. This move will make Engro an unlisted subsidiary of Engro Holdings.
This restructuring will result in Engro shareholders receiving 2.24 shares of Engro Holdings for every Engro share they own, boosting Engro Holdings’ share count by 723 million to a total of 1,204 million shares.
