KARACHI: Stocks continued to regain lost ground on Friday, adding 486.18 points (1.43 per cent) to the KSE-100 index which closed at 34,447.47.

Analyst Arhum Ghous at JS Global stated that oil sector led the rally due to the biggest recovery in global oil price since 2009. As a result, POL, PSO, OGDC and PPL climbed by 5pc, 3pc, 4.7pc and 5pc, respectively.

Cement sector remained strong on the back of improved gross margins due to lower coal price as MLCF, PIOC and DGKC were up by 4.8pc, 4.9pc and 4.7pc, respectively.

Fertilisers remained in the green zone after the news that its consumption increased by 18pc year-on-year in first three months of current summer crop season.

Analyst Ahsan Mehanti observed that speculations ahead of CPI inflation data for Aug 2015, upbeat fertilisers consumption and stable economic outlook played a catalyst role in bullish close.

Over the week, the KSE-100 index fell 73 points (0.21pc).

Dealers at Topline Securities said that the week witnessed intense volatility in line with regional equities and commodities market.

The 8pc drop in Chinese market had the domino effect on other markets. Yet the rate cut and change in reserve requirement ratios by China were the catalyst for recovery in global markets, helping KSE to recover much of the mammoth loss (4.1pc) suffered on Monday.

Foreign portfolio outflow during the week amounted to $42.2 million. In the current month, foreign sales stood at the huge order of $79.9m while their year-to-date net selling amounts to $175.7m. Mutual funds were major sellers of $15m equity during the week.

Analysts at AKD Securities said that the week was marred by heightened volatility and prevalence of adverse external factors.

Published in Dawn, August 29th, 2015

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