Islamabad, Jan 4: On Friday, the stock market continued its bullish performance for the third consecutive session, despite significant volatility during the trading day. The benchmark KSE 100 index initially faced a sharp decline, driven by pressure in the cement sector, which caused the index to drop by as much as 1,540 points, reaching a low of 115,580.02.
The downturn in the cement sector stemmed from rumors of a dispute among manufacturers over market share and geographic sales strategies, leading to concerns about market competition and pricing. However, during the second half of the session, investors took advantage of the dip, leading to a recovery that saw the index close at 117,587, up 467.33 points or 0.4% from the previous day.
The fertilizer sector played a key role in driving the recovery, contributing 911 points to the index. Stocks like Engro Fertilizer, Fauji Fertilizer, Dawood Hercules, and Engro Corporation saw strong buying interest due to expectations of a surge in urea sales in December. In contrast, the cement sector, including stocks like Lucky Cement and Fauji Cement, faced selling pressure, which resulted in a 466-point loss.
Market analysts pointed to strong earnings outlooks for the banking and fertilizer sectors as a key factor behind the bullish sentiment. Expectations of high payouts in the banking sector, along with projections of a potential cut in the SBP policy rate, contributed to positive market sentiment.
Despite the overall positive movement, trading volume fell by 9.83% to 935.78 million shares, and the traded value decreased by 14.92% to Rs39.62 billion. The most actively traded stocks included WorldCall Telecom, Cnergyico PK, and Fauji Cement.
In terms of price movements, Al-Ghazi Tractors saw the biggest increase, with a rise of Rs62.97, followed by Mehmood Textile and Indus Motor Company. On the other hand, Unilever Foods, Khyber Textile, and Lucky Cement saw the largest declines in share prices.
