KARACHI: The stock market made a major recovery after a steep decline on Thursday which traders said mirrored its resilience. The KSE-100 index finished with a marginal loss of 69.89 points (0.17 per cent) at 41,806.37.
The index started out in the red and as investors started to jettison shares across the board on host of negative news, it spiraled downwards to hit the intraday low by 459 points.
The commotion was caused by the third day of bleeding global markets that prompted the Federal Reserve to concede that economy was in need of another fiscal stimulus. Global investors worried over another blow to recovery following the fear of second wave of Covid-19.
Among local factors, the second day of the rollover week cast its spell on the weak holders who intensified selling to cover their positions. Simmering developments on the political front also unnerved investors.
The market managed to calm down in the latter half of the day and bounce back, which saw buying at dips by insurance companies; banks; corporates and even brokers. The major downturn was caused by foreign selling in the sum of $3.40 million and the indiscriminate offloading of shares worth $5.84m by individuals.
Traded value stood at $91 million, up 17pc and volume stood at 435m shares, down 25pc. Major contribution to total turnover came from K-Electric, Unity Foods, Hascol Petroleum and Power Cement with cumulative 126m shares changing hands.
Heavy selling was seen in cement, exploration, and banking stocks. In E&P, Oil and Gas Development Company, Pakistan Oilfields and Pakistan Petroleum closed in the red zone as crude prices edged lower in the international market.
Major positive contributors to the index included Engro Corporation, Engro Fertiliser, Fauji Fertiliser, Lucky Cement and Pakistan State Oil which cumulatively added 101 points.
Published in Dawn, September 25th, 2020
Dear visitor, the comments section is undergoing an overhaul and will return soon.