KARACHI: The recovery drive on the stock marked entered its fourth successive day where the benchmark KSE-100 index gained 395.88 points (0.99 per cent) to close at 40,271 points on Friday.Trading took a depressing start as the index fell to intraday low by 24 points. Investors were nervous over the developing political scenario where the former PM Nawaz Sharif and his daughter were to return to the country in the evening.

But the local and foreign investors soon shrugged off the fear and jostled to take positions in blue-chip banking stocks. Market expected the State Bank of Pakistan to raise the policy rate by 50-150 basis points in the monetary policy for the next two months, due to be announced on Saturday (today).

Analysts concurred that the rate would be raised in a bid to restrain domestic demand and overcome the external account challenges. Arif Habib Ltd stated that the foreign investors, who were selling off the banking stocks till a day ago, surprised the market by aggressive buying in banks.

In the second session, the index rebounded to reach intraday high by 513 points. Overall, foreign fund managers were net sellers of equity worth $2.19 million, taking the four-day outflow to $24.89m.

Mixed sentiments were witnessed in the cement sector, where DG Khan Cement, Maple Leaf Cement and Fauji Cement closed in the red zone, whereas Lucky Cement closed in green.

Sectors contributing to the index upside included banks, higher by 447 points, tobacco 28 points, textile 18 points, technology 13 points while fertiliser was lower by 39 points.

Stock-wise major gainers were Habib Bank, up 5pc, MCB Bank 5pc, United Bank 4.99pc, Bank Al Habib 4.14pc and Bank Alfalah 4.72pc which together added 353 points.

Published in Dawn, July 14th, 2018