KARACHI: Stocks closed bullish on Friday with the KSE-100 index securing gains of 412.20 points or 1.45 per cent. Activity remained thin as retail investors remained cautious over prevailing political situation.
Foreign investors bought $1.19 million worth stocks on Friday, while the mutual funds, for the first time after several days, halted sell-off and bought back equity worth $1.79m.
Analyst Ahsan Mehanti stated that institutions showed interest on Friday in blue chip stocks amid support from state owned funds. Strong earnings and payout by Pakistan Oil fields, reports on easing circular debt through tariff rationalisation measures and improved data for petroleum and fertiliser sales in July 2014 played a catalyst role in bullish activity.
Samar Iqbal, head of equity sales at Topline Securities said that strong recovery was seen after investors realised that so far the protest has been peaceful, PSO rallied by 2.5pc amid institutional support .
On Friday, APL, POL, ATRL, NRL, ACPL, INIL and CHCC announced their June quarter results.
AKD Securities in its weekly report commented that the political uncertainty continued to hinder the market during the week with the KSE-100 Index losing 463 points or 1.58pc over the previous week.
“After the highest single day decline of 1,310 points or 4.5pc on Monday, the subsequent strength over the week indicated that investors’ concerns were alleviated to an extent, with murmurs of a backroom deal being struck between political players”, analysts said.
Foreign buying remained muted during the week with net foreign purchases at $0.2m, down from $21.6m the previous week.
KASB Securities said that politics emerged as a major market mover during the week.