KARACHI: Despite extreme volatility, the stock market turned in another bullish performance on Friday, extending the record-setting spree to the third straight session.
Topline Securities Ltd said the benchmark KSE 100 index opened negatively, led mainly by pressure in the cement sector, as the index declined to make an intraday loss of 1,540 points at 115,580.02.
Pressure in the cement sector was on noise that there was a dispute among cement manufacturers for an increase in market share and change in geographic sales to fetch higher retention prices where some players were reportedly encroaching on the volumes of others, creating unease within the sector.
However, in the second half of the trading session, investors came to buy at the dip as the index recovered to close at the 117,587 level, up by 467.33 or 0.4pc day-on-day.
The top positive contribution to the index came from the fertiliser sector as Engro Fertiliser, Fauji Fertiliser, Dawood Hercules, and Engro Corporation cumulatively contributed 911 points to the index. Buying interest in the fertiliser sector was due to the expectation of a surge in sales in December.
Conversely, Lucky Cement, Systems Ltd, Pakistan Petroleum, Fauji Cement, and Pioneer Cement wiped out 466 points.
Ahsan Mehanti of Arif Habib Corporation said stocks maintained a bullish tone led by the banking and fertiliser sectors on a strong earnings outlook.
He added that expected high payouts in the banking sector, upbeat urea sales, and projections over the SBP policy rate cut supported the uppishly inclined sentiments.
Ali Najib, Head of Sales at Insight Securities, said the equities market continued to observe a consolidation day as bulls opted to put their feet up after having a massive show last year.
Rumours regarding decartelisation put the cement stocks onto the firing range as investors opted to book profit, compelling the whole sector to bear selling headwinds, he noted, adding that fertiliser sector continued to remain blue-eyed where stockholders further strengthened their positions in anticipation of better-than-expected final quarter’s result along with handsome dividend.
However, the trading volume fell 9.83pc to 935.78 million shares while the traded value dipped 14.92pc to Rs39.62bn day-on-day.
Stocks contributing significantly to the traded volume included WorldCall Telecom (73.23m shares), Cnergyico PK (57.32m shares), Fauji Cement (54.37m shares), Fauji Foods (48.48m shares) and Pace Pakistan (47.35m shares).
The shares registering the most significant increases in their share prices in absolute terms were Al-Ghazi Tractors (Rs62.97), Mehmood Textile (Rs45.94), Indus Motor Company (Rs44.25), Haleon Pakistan (Rs29.53) and Pakistan Services (Rs22.76).
The companies registering significant decreases in their share prices in absolute terms were Unilever Foods (Rs227.69), Khyber Textile (Rs45.46), Lucky Cement (Rs44.76), Hallmark Company (Rs40.33) and Hinopak Motors (Rs23.66).
Published in Dawn, January 4th, 2025
