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The Pakistan Stock Exchange (PSX) exhibited positive momentum on Friday, driven by an improved economic outlook and investor interest in the government’s ongoing discussions regarding the privatisation of state-owned enterprises (SOEs). The market also drew support from bullish global equity trends and the government’s commitment to reducing power tariffs.
Market Performance and Trends
Trading commenced with strong buying activity, and the KSE-100 index surged nearly 500 points by midday, reaching an intra-day high of 78,914.28, an increase of 565 points. However, profit-taking later in the session resulted in the index dropping to an intra-day low of 78,439.62. Despite this, the market recovered somewhat by the close of trading.
At the end of the day, the KSE-100 index registered a modest gain of 138.55 points, or 0.18%, closing at 78,488.22. Ahsan Mehanti, MD of Arif Habib Corp, attributed the positive closing to the government’s discussions on SOE privatisation, speculation about lower CPI inflation in August, and Moody’s recent rating upgrade for Pakistan.
Sector Contributions and Trading Activity
Topline Securities noted that the market traded largely in the positive zone, with the index peaking at an intra-day high of 564 points. Major positive contributions came from Engro Fertilisers, Millat Tractors, Fauji Fertiliser, National Bank, and United Bank, which together added 239 points to the index. Conversely, declines in Hub Power, Habib Bank, Bank AL Habib, Pakistan Petroleum, and Bank Alfalah subtracted 141 points.
The trading session saw increased volumes, with a total of 680.8 million shares traded compared to 599.8 million shares on Thursday. The value of shares traded was Rs21.2 billion. Hascol Petroleum led the volume with 63.1 million shares, closing at Rs7.90 after a gain of Rs0.65. Kohinoor Spinning Mills followed with 44.6 million shares, closing at Rs11.84, and Symmetry Group with 38.7 million shares, closing at Rs9.34.
Analyst Insights and Future Outlook
Arif Habib Limited (AHL) observed a range-bound week for the KSE-100 index, fluctuating between 78,000 and 79,000 points. Despite ending the week with a slight decline, AHL noted significant contributions from Engro Fertilisers (+2.65%), Fauji Fertiliser (+1.82%), and Millat Tractors (+3.32%). Major drags included Hub Power (-1.09%), Bank AL Habib (-1.88%), and Habib Bank (-1.28%).
JS Global analyst Mohammed Waqar Iqbal highlighted that the market closed with modest gains, driven primarily by buying in fertiliser, oil and gas, and banking sectors. He recommended a buy-on-dips strategy with a focus on technology, fertiliser, cement, and oil and gas sectors.
Foreign Investment and Stock Performance
Foreign investors were net buyers of Rs565.4 million worth of shares, according to the National Clearing Company of Pakistan Limited (NCCPL). Meanwhile, the trading activity was marked by substantial volumes. Specifically, shares of 454 companies were traded; of these, 214 companies saw their shares close higher, 180 experienced a decline, and 60 remained unchanged.
Conclusion
The PSX’s positive performance on Friday reflects investor optimism, driven by favorable economic developments and government commitments. Additionally, the market’s recovery from profit-taking demonstrates resilience and suggests potential for continued growth, bolstered by positive global trends and supportive local economic policies.
