The benchmark KSE-100 index displayed a mixed trading session on Friday, ultimately closing with a modest gain of 63 points, reaching a level of 39,306 points compared to the previous day’s closing at 39,244 points.
The market witnessed fluctuating trends throughout the day, with investors closely monitoring various sectors and ongoing market dynamics.
The trading day started on a positive note, and the market exhibited a notable surge in volume during the initial session, surpassing the 70 million mark. The index showed considerable volatility during the day, with fluctuations ranging from -152 points to +147 points.
One of the highlights of the trading session was the substantial trading activity in K-Electric Limited (KEL), with a total volume of 55.9 million shares. This accounted for 36 percent of the total traded volume for the day. Market analysts at Arif Habib Limited attributed this surge in KEL’s trading volume to the anticipation of a potential deal conclusion with Shanghai Electric, an event that has been closely monitored by market participants.
Conversely, selling pressure was observed in several key sectors, including Exploration & Production (E&P), Banking, Cement, and Oil & Gas Marketing Companies (O&GMCs). These sectors experienced downward pressure during the trading session, affecting the overall market sentiment.
The market’s performance appeared to be influenced by expectations related to the upcoming mini-budget, as investors anticipated potential changes that could benefit specific sectors. This anticipation led to various sectors contributing to the market’s performance in different ways.
Key sectors that made significant contributions to the market’s performance included Fertilizer, which added 45 points, Power with 29 points, Chemical with 11 points, Insurance with 5 points, Banks with a negative impact of 20 points, and Cement with a negative impact of 19 points. The varying performance of these sectors reflects the diverse dynamics at play in the market.
During the trading session, the volume of shares increased from 104.5 million to 154.8 million, marking a substantial rise of 48 percent compared to the previous day. This surge in trading volume indicates active participation from investors and traders, with a keen interest in the day’s market activities.
However, despite the increased trading volume, the average traded value showed a decline of 5 percent, reaching $36.8 million as opposed to the previous day’s value of $38.7 million. The decrease in traded value suggests that while trading activity increased, the overall value of shares traded was slightly lower.
Notably, several stocks played a significant role in shaping the day’s trading volumes. Prominent among them were K-Electric Limited (KEL), TRG Pakistan Limited (TRG), Unity Foods Limited (UNITY), Pak Elektron Limited (PAEL), and Sui Southern Gas Company Limited (SSGC), collectively forming 55 percent of the total trading volumes.
As the market remains sensitive to economic and political developments, including the forthcoming mini-budget and global economic conditions, investors and market analysts will continue to monitor these factors closely. The fluctuating trends in the stock market reflect the dynamic nature of Pakistan’s financial landscape, offering both opportunities and challenges for market participants.
