KARACHI: Bulls took the market by storm on Friday with the KSE-100 index shooting through the roof by 304.35 points to finish the week at 25,783.28, representing gain of 0.7 per cent WoW.
All through the previous sessions, the stock market traded in a narrow band, producing loss of 0.48pc.
Yet a surprising rally on Friday, led mainly by the foreign investors, who bought shares worth a heavy $6.62 million, salvaged the situation. Strong foreign inflows also on Thursday, boosted investor sentiments.
February contract also concluded on Friday which gave support to the market.
The index moved in a wide band of 403 points onFriday, between intra-day low at 25,477.36 points and high at 25880.34.
Although volume leaders list was again dominated by the second-tier stocks with Jah Sidd Co ahead of the rest with trading seen in 19 million shares, Engro Corp also claimed huge turnover at 8 million shares. Cement stocks were firm on Friday. Yet it was the announcement of unprecedented earnings and splen-did interim payout of cash dividend at Rs2 along with bonus shares at 10pc by PSO, which triggered the rally. Share in PSO closed at its ‘upper circuit’.
The other major index moving stock for the day was Engro, were rumours of ECC approving the LNG terminal on Friday, circulated in the market.
Other index heavyweight first-tier stocks such as OGDC, PFL, Lucky Cement and MCB Bank also saw intense activity, which gave a clue to the presence of foreign funds.
Ahsan Mehanti at Arif Habib Corp observed that renewed foreign interest, rising foreign exchange reserves, easing concerns on political front and expectations of favourable CPI data for Feb 2014 played catalyst role in strong recovery of selected oversold stocks across the board.