The share market saw a modest rise on Friday, with the benchmark KSE-100 index of Pakistan Stock Exchange (PSX) gaining 75 points. The index closed at 45,306 points, up from the previous day’s close of 45,230 points. This upward movement comes despite a significant reduction in trading volumes during the day.
Market analysts at Arif Habib Limited attributed the slight increase to anticipation surrounding the upcoming earnings season. The financial results of key companies, which are expected in the coming week, have kept investor interest alive, even though overall trading activity remained muted.
Sectors that typically follow cyclical trends, including Cement, Steel, and Automobiles, performed relatively well, with small-cap stocks capturing more attention than large blue-chip companies. Notably, GGL, which had seen a decline in the previous session, bounced back on Friday, reflecting investor confidence in smaller, growth-oriented companies.
TELE, a technology sector stock, continued its upward trajectory, despite its recent meteoric rise, signaling strong demand and optimism within the tech space. Technology stocks dominated market activity, with TELE leading the trading volumes, recording 21.4 million shares traded, followed by GGL with an equal volume of 21.4 million shares, and TRG with 16.2 million shares.
However, the day’s trading volumes saw a sharp drop, declining by 50% day-on-day (DoD), from 347.6 million shares on Thursday to just 173 million shares on Friday. This drop in volume reflects a cautious approach by investors ahead of the earnings reports. The average traded value also decreased by 31%, reaching $57.2 million compared to $82.5 million the previous day.
In terms of sectoral performance, Banks contributed 27 points to the overall market gain, while Technology added 19 points, Fertilizer 18 points, Autos 13 points, and Auto Parts 10 points. This diversified contribution highlights the balanced nature of Friday’s market performance.
Among the top contributors to the index’s gains were key stocks like ENGRO (+16 points), TRG (+15 points), HBL (+9 points), HUBC (+7 points), and PSMC (+7 points). On the flip side, stocks that dragged the index down included PAKT (-11 points), DGKC (-7 points), FCCL (-5 points), PPL (-5 points), and FFBL (-4 points).
As the market prepares for next week’s earnings announcements, trading activity is expected to pick up, with investors closely watching financial reports that may shape the market’s direction in the near term.