KARACHI: Stocks resumed the downward journey on Friday with the KSE-100 index giving up another 156.54 points or 0.53 per cent to close the week at 29,380.50.
After a brief burst of optimism the earlier day, investors’ sentiment dampened giving way to a volatile trade with thin volumes.
Mutual funds thought it prudent to sell $1.74 million worth equity as many of the over 40 funds did not want to put their certificate holders’ money in peril, under a cloud of uncertainty.
The foreign funds also thought it wise to wait and watch with portfolio outflow of net $0.41m.
Investors fretted over the inflammable political situation and what might follow Aug 14 agitation by PTI. “Investors believe that market has already discounted the ongoing political uncertainty, consequently support was witnessed in various stocks,” commented an analyst, but many others did not subscribe to that view. The declining regional markets added to investors’ worries.
Analyst Ahsan Mehanti stated that volume remained low on Friday led by support in second and third tier banking stocks ahead of earning announcements due next week after banking spreads witnessed jump to 6.36pc.
Concerns for rising circular debt in energy sector, reports of falling local dispatches in cement sector and uncertainty in global stocks amid deteriorating geo-political situation played a catalyst role in bearish activity.
In its week-end report, KASB Securities stated that the market entered the bearish mode in the first week post Eid holidays, not being able to sustain the 30,000 psychological level courtesy rising political temperature.
The KSE-100 index fell by a significant 934 points or 3.1pc over the week.