KARACHI: After the massive bloodshed a day earlier, the stock market limped back to a semblance of normalcy on Friday. The KSE-100 index recouped 177.62 points (0.44 per cent) and closed at 40,832.99.
The market remained in directionless trading throughout both sessions, with the index sporting intraday high and low by 399 points and 161 points. Individuals were the major buyers of stocks worth $2.46 million while mutual funds thought it wiser to take profit ahead of the weekend by disposal of shares valued at $2.88m. Other local participants watched from the sidelines while foreigners offloaded equity worth a minor $0.67m.
The measured response from ISPR to the detailed judgement of the special court in General Musharraf’s case went to calm the market where seasoned players said it looked like the fear of confrontation between institutions had been averted.
Investors’ focus shifted to the economy where State Bank reserves surged to $10.8bn with an increase of $1.7bn. It was expected to raise SBP import cover to 2.2 months. Other positive news was the approval of the International Monetary Fund executive board to the disbursement of second tranche of $452m under $6bn support programme which would further shore foreign currency stocks.
The volume declined by 31pc to 180.7m shares while traded value also plunged by 25pc to $55.1m. Selling pressure was evident across most sectors with major beating taken by cement, banking and steel sectors. Oil chain, especially exploration and production stocks, proved to be the saviour as they staged good recovery by the end of session. Analysts said that the higher international oil prices had kept investors’ interest alive in them.
Scrip-wise, contributors to the index gains were Pakistan Petroleum, higher by 3.1pc, Oil and Gas Development Company 2.1pc, Fauji Fertiliser Company 1.1pc, Engro Corporation 0.6pc, Dawood Hercules 2.2pc, Mari Petroleum 1.7pc and Lucky Cement 0.7pc.
