KARACHI: Range-bound activity was witnessed on the stock market on Thursday where the KSE-100 index after three days of decline managed to recover 88.63 points (0.23 per cent) and close at 38,237.89.

For most of the trading session, index drifted aimlessly between the intraday high of 116 points and low of 135 points.

Foreign investors sold stocks worth $1.78 million. Volumes declined 8.5pc to 113m shares and traded value fell 13pc to Rs6.6bn over the earlier day. K-Electric and Dewan Cement were volume leaders again with combined volume of 22m shares.

Some recovery was witnessed in scrips proposed to be part of MSCI Emerging Market Index as MCB rose 2.82pc, Engro 1.02pc and UBL 0.04pc.

Analyst Arhum Ghous at JS Global stated that PPL up 0.16pc and POL 0.02pc on the back of material information disseminated in the market that MOL had encountered gas reserves at Tolang West-1; PPL, POL, OGDC and GHPL have working interest in the block.

Analyst Ahsan Mehanti at Arif Habib Corp commented that the stocks showed recovery amid institutional support in banking and fertiliser scrips on strong valuations. Pressure remained on concerns for security unrest in the city and foreign outflows.

“Top seven index contributors were MCB, HBL, ENGRO, HUBC, NRL, FCCL and FFC,” dealers at Intermarket Securities calculated. Most analysts thought the market might remain dull during the remaining days of Ramazan. “Activity should pick up post holy month particularly as triggers come into play,” market participants believe.

Result season could be an interesting period while the SBP would also announce its MPS next month. Both events could give fillip to investors’ interest in trading.

Published in Dawn, June 24th, 2016