KARACHI: The stock market bounced back on the last trading day of the week with major contributions from exploration and production (E&P), cement and the pharmaceutical sectors. The KSE-100 index rose 231.03 points (0.68 per cent) and closed at 34,350.42.

Investor participation lac­ked enthusiasm as the volume dried up further with 89 million shares traded, down 38pc, though that was partly due to shortened trading hours on Friday.

Foreigners sold shares worth $1.43m, whereas mutual funds and individuals went in different directions as is generally the case — the former being the buyers while the latter sellers. Most institutional investors decided to sit tight on cash un­­til the budget 2020-21 gets to be unfolded on June 12.

Whispers of a return to the lockdown on dreadful rise in the coronavirus cases in the country that surpassed even China also kept investors on the sidelines as the uncertain situation made it difficult to make an informed decision on the corporate earnings going forward. “Sell on strength” was the recommendation of several brokerage houses.

After a day of decline, the E&P stocks resumed the climb underpinned by the bullish tone in the international oil prices ahead of the OPEC+ meeting, due today, where major oil producers would put their heads together to discuss whether to extend the record production cuts. Meanwhile, Pakistan Oilfields, Pakistan Petroleum and Oil and Gas Development Company closed in the positive trajectory. In cement, Kohat, Pioneer, Maple Leaf, Cherat and Lucky all saw increase in share prices.

As the race to be the first to introduce vaccines to protect from COVID-19 intensifies, pharmaceutical shares move back and forth and were generally up on Friday with AGP and Ferozsons hitting their upper circuit. Major stocks that enabled the index to record gains included Engro Corporation, up 2pc, Hub Power 0.4pc, OGDC 0.5pc, Habib Bank 0.4pc, Pakistan Petroleum 0.6pc, Lucky Cement 1.2pc and Pakistan Oilfieds 2.2pc.

Published in Dawn, June 6th, 2020