KARACHI: After a free fall all through the week, stocks stabilised on Friday as the KSE-100 index closed with minor recovery of 17.47 points at 28,691.84.

The volume dipped to 114m shares, 40pc down from the previous day’s turnover. Except UBL and Hascol Petroleum, other eight volume leaders were second and third tier stocks.

Foreign investors were net sellers of $0.45 million worth equity.

Brokerages came up with their weekly report, calculating sizeable loss of 1,039 points or 3.49pc in KSE-100 index points during the week. Foreign inflows amounted to $3.6m during the week, representing significant slowdown over the past few weeks.

AKD Securities stated that the negativity in the market was possibly triggered by the law and order situation where clashes between the police and Pakistan Awami Tehreek (PAT) activists in Lahore created tension in the country, in addition to the backdrop of an army operation in N. Waziristan.

“Recent events come as the first real test of this government and have seemingly unnerved local investors who remained on the selling side,” analysts said.

Samar Iqbal, AVP equity sales at Topline Securities summed up the weekly performance by indicating that the average volume also fell 30pc to 152m shares, while average value turned lower by 27pc to Rs7bn.

They attributed the stock plunge to fall in global equity markets and military operation in North Waziristan, which forced market participants to stay cautious, while increase in local political noise also dented sentiments.

Institutional activity also decreased ahead of June quarter-end. PTC witnessed selling pressure after the abolishment of International Clearing House, while PSO also declined amid uncertainty over mounting circular debt.

Published in Dawn, June 21st, 2014