KARACHI: Stocks rebounded on Friday with the KSE-100 index posting day-end recovery of 149.23 points (0.46 per cent) to close for the week-end at 32,458.77.

Extending huge losses from last session, stocks opened negative and continued to bleed in the first half with the index sinking to intra-day low by 408 points.

Some encouraging reports on the imminent arrival of the Market Opportunity Fund as early as next week, the clarification by the Securities and Exchange Commission of Pakistan on the “Search and Seize” rules that dispelled rumours of a crackdown on corporates helped build investor sentiments.

Cherry picking by value investors and continuation of foreign buying which on Friday amounted to $2.65 million helped index surge to intra-day high by 240 points, showing a sharp volatility of 648 points during the day.

Despite the continuous sell-off by mutual funds, which on Friday stood at $3.20m and the explosive situation on the political front, investors displayed risk appetite to carry-over fresh positions over the weekend.

Traded volumes increased from 87m shares to 121m shares (up 39pc day-on-day) while the traded value improved 15.9pc DoD to reach $27.2m.

In anticipation of arrival of State Enterprise Fund, buying activity took place in index heavy weights such as Oil and Gas Development Company (OGDC), Pakistan Petroleum Ltd (PPL), Pakistan State Oil (PSO), Lucky Cement (LUCK), where PSO ended at upper circuit.

Cement sector led the volume chart with 26.9m shares where D G Khan Cement and LUCK closed positive.

In the exploration and production sector PPL, OGDC and Pakistan Oilfields Ltd closed higher than their previous day close on back of increase in crude oil prices in the international market.

According to Intermarket Securities, scrip-wise major gainers on Friday were Engro Corporation up 2.23pc, OGDC 1.89pc, PPL 1.95pc, LUCK 2.33pc, Fauji Fertiliser Company 1.67pc, PSO 4.12pc, Sui Northern Gas Pipelines Ltd 4.41pc, Searle Pakistan 5pc and National Bank of Pakistan 2.94pc.

On the flip side, United Bank Ltd was down 2.02pc, Hub Power Company 1.32pc and Nestle Pakistan 5pc weighed down on index performance.

Published in Dawn, July 20th, 2019