KARACHI: The bulls appeared from nowhere on Friday to stage a strong rally that saw the KSE-100 index recover all of the Thursday’s loss. The index gained 485.82 points (1.16 per cent) and closed at 42,446.62.

The market had receded 485.76 points (1.14pc) a day earlier. Investors seemed to be excited over the final stages of the installation of the new government as parliamentarians were set to elect the new prime minister.

Although no surprises were expected in the results, investors’ sentiments got a boost on the political clarity which raised hopes of new government giving priority to cure the country’s economic malaise.

Investors enthusiastically ignored the disheartening reports of the country’s total liquid foreign exchange reserves falling below $17 billion and rating agency Fitch expressing concerns that the incoming government may face tough economic tasks due to deterioration of external and fiscal finances.

The market took off to a storming start and touched intraday high by 592 points as most of the blue-chip scrips in banks, cement, oil and fertiliser recovered their earlier lost ground. But since the next week would have just two sessions, prudent investors decided to cut down on their fresh positions.

The volume increased 36pc from the earlier day to 142.2 million shares while the traded value rose by 12pc to reach Rs8.1bn. Bank of Punjab, Worldcall, Unity Foods, Engro Polymer and Chemical and Pakistan International Air accounted for 35pc of the total turnover.

Sectors contributing to the bullish performance included banks, higher by 148 points, cement 106 points, oil and gas marketing companies 44 points, fertiliser 38 points and exploration and production 30 points.

Major gainers were Bank Al Habib, up 3.89pc, United Bank 2.36pc, MCB 0.89pc, Fauji Fertiliser 0.24pc, Lucky Cement 2.17pc, DG Khan Cement 4.99pc, Engro Corporation 1.09pc, Pakis­tan Petroleum 0.55pc and Oil and Gas Development Company 0.61pc.

Published in Dawn, August 18th, 2018