KARACHI: The Pakistan Stock Exchange (PSX) experienced a slight downturn on Friday, with the benchmark KSE-100 index shedding 41 points amid cautious trading.
The index concluded the day at 39,049 points, down from its opening point of 39,090, reflecting a modest decline in market sentiment.
Analysts at Arif Habib Limited noted that the index remained largely stagnant throughout the day, with the initial uptick of 26 points during the opening session followed by a 41-point dip in the second session. This cautious sentiment seems to have been the dominant theme of the day.
The exploration and production (E&P) sector, which had shown strength in recent sessions, displayed a subdued performance throughout the day. Investors maintained a cautious stance toward the oil sector. However, the fertilizer sector experienced a significant surge in response to news of a 50 percent reduction in the Gas Infrastructure Development Cess (GIDC). As a result, stocks of companies like Fauji Fertilizer Company (FFC) and Fauji Fertilizer Bin Qasim Limited (FFBL) hit their upper circuit limits, while other fertilizer sector stocks also demonstrated improved price performance. Engro Polymer and Chemicals Limited (EPCL) initially saw a decline due to reports of a fire at one of its plants but managed to recover somewhat by the end of the session.
Key sectors contributing to the day’s performance included Pharma (+46 points), Fertilizer (+23 points), Cement (-28 points), Tobacco (-25 points), Oil and Gas Marketing Companies (O&GMCs) (-22 points), Chemical (-20 points), and Autos (-17 points). It was evident that the pharmaceutical and fertilizer sectors played a pivotal role in sustaining the market’s performance.
Trading volumes saw a modest increase, with the number of shares traded rising from 112 million to 123 million, reflecting a 10 percent day-on-day (DoD) increase. The average traded value also saw a significant uptick, climbing from $33 million to $45.7 million, marking a substantial 38 percent DoD increase.
Notable stocks that significantly contributed to the day’s trading volumes included K-Electric (KEL), Sui Southern Gas Company (SSGC), TRG Pakistan Limited (TRG), Pakistan Elektron Limited (PAEL), and Engro Fertilizers Limited (EFERT), which collectively accounted for 35 percent of the total volumes.
While the market experienced some fluctuations, the overall sentiment remained cautious. Investors closely monitored developments in various sectors, with the fertilizer sector showing notable resilience in response to a significant reduction in GIDC. As the market continues to adjust to economic and sector-specific news, traders remain attentive to potential opportunities and risks in the coming trading sessions.
