Karachi, The Karachi Stock Exchange (KSE) witnessed a record high as the KSE100 index surged by 771 points, closing at 72,743. The rally was driven by strong performances in the Auto and Fertilizer sectors, with GHNI and FFBL among the top gainers. However, technology stocks faced profit-taking after recent gains, with OCTOPUS closing at its limit down.

According to JS Global, AKBL (1.2%), KEL (-1.3%), WTL (-4.3%), CNERGY (3.7%), and UNITY (1.5%) were among the volume leaders as market turnover reached 541 million shares. The upcoming Monetary Policy Committee (MPC) meeting on Monday could add to market volatility, prompting analysts to advise caution.

In other financial news, the State Bank of Pakistan (SBP) reported a decline in reserves by US$74 million, totaling US$7.98 billion. This represents a 0.9% decrease week-over-week. The total reserves, including bank reserves, also dropped, indicating a broader impact on the country's financial stability.

PSO Result Review:

Pakistan State Oil (PSO) released its financial results for 3QFY24, indicating a decline in net sales by 7% quarter-over-quarter, totaling PKR 843,487 million. Gross profit also saw a significant drop, down 47% year-over-year, with operating profit falling by 56%. The profit after tax for 3QFY24 stood at PKR 5,647 million, a 59% decrease from the previous quarter. Despite these challenges, the company's financial charges remained consistent, and the effective tax rate fell to 5%.

AICL Result Review:

Adamjee Insurance Company Limited (AICL) posted positive underwriting results after seven quarters. The company's net premium revenue rose by 18% year-over-year, reaching PKR 5,716 million. The underwriting result for 1QCY24 improved to PKR 146 million, a notable turnaround from previous quarters. AICL's profit before tax for 1QCY24 was PKR 1,614 million, nearly doubling from the previous quarter. The profit after tax also increased to PKR 975 million, a 93% year-over-year gain.

JS Banking Universe Review:

JS Global's review of the banking sector highlighted a mixed quarter with some institutions showing a decline in net interest income. MCB experienced an 8% drop in net interest income, while MEBL faced a 6% decrease. However, the sector overall maintained stability, with many banks reporting positive non-interest income, supported by fee, commission, and brokerage income.

JS Cement Universe Snapshot:

The cement sector exhibited varied results. DGKC saw a 22% decline in sales, while other companies like MLCF experienced a 6% decrease. Gross margins across the sector ranged from 18% to 32%, indicating a competitive environment with fluctuating profitability.

As the market approaches the new week, investors are advised to remain cautious, given the potential volatility due to the upcoming MPC meeting. The overall outlook remains uncertain, with broader economic factors influencing market trends.