KARACHI: Stocks extended recovery into the second day on Wednesday with the KSE-100 index reclaiming 287.25 points (0.75 per cent) and settle at 38,792.09.

Trading remained volatile with the benchmark showing wide intraday movement of 932 points (intraday high and low by 322 points and 611 points) as investors braced for Pakistan’s entry into the International Monetary Fund programme.

The market was off to a weak start as investors were worried over the repeat of a heavy selling by foreign funds at $15.7 million a day ago. But as the day progressed, foreigners remained on the sidelines and finished off with net buying worth $1m.

Panic in the money market also appeared to simmer down as the rupee stabilised in intermarket, following the heaviest single day decline of 7.5pc a day earlier. On the economic front, the country’s trade deficit for September pared by $272m, offering some comfort to traders.

The traded volume declined 11pc to 199m shares while traded value fell 27pc to Rs7.173 billion. Among sectors, technology remained top traded with volumetric activity of 35m shares.

In the last hour of trading, financial sector led the rally, contributing over 170 points to the index. In the cement sector, some top scrips rose on back of reports that the domestic cement consumption bounced back in September after two months of lacklustre growth. Automobile stocks were under pressure as the condition of being a filer to purchase new vehicles continued to bite.

Among scrips, Habib Bank, up 1.4pc, Oil and Gas Development Company 1pc, Engro Corporation 1pc, MCB 4.1pc, Pakistan Oilfields 0.9pc, United Bank 2.9pc and Fauji Fertiliser 1pc cumulatively added 206 points. On the flip side, Pakistan Petroleum, down 0.85pc, Indus Motor Company 4.76pc and Engro Fertiliser 0.81pc took away 41 points.

Published in Dawn, October 11th, 2018