KARACHI: Stocks staged partial recovery on Friday as the KSE-100 index recouped 348.64 points, or 1.1 per cent, to close at 31,800.
Investors’ interest was sparked by several factors which included the attractive valuations due to the persistent decline; the optimistic outlook on the monetary policy to be announced on Saturday and the net buying by foreign investors on Thursday after weeks of outflows.
However, the respite proved short-lived as foreigners offloaded $0.90 million worth equity on Friday.
Arhum Ghous at JS Global Securities commented that long-awaited bullish sentiment was witnessed on Friday as investors anticipate a rate cut in monetary policy.
Market anticipation of a 100bps cut gained strength leading to a run in the highly leveraged cement sector as MLCF, FCCL, CHCC, PIOC and KOHC, which were up 5.0pc, 4.8pc, 3.3pc, 3.1pc and 2.7pc. However, the banking sector realised a pre-rate hike hit as MCB hit its lower circuit and AKBL, ABL, BAFL, FABL and UBL all ended down 1.2pc, 0.9pc, 1.2pc, 1.2pc and 0.3pc.
Brokerage Topline Securities attributed the decline to foreign selling and bearish performance of oil and bank stocks.Over the week, the stocks were severely battered with the KSE-100 index plunging by 1,129 points or 3.43pc.
During the week, net foreign sale amounted to $23.9m. Major foreign activity was witnessed in oil and gas, bank and cement sectors with combined net selling of $17.8m.
Lafarge Pakistan Cement, Colgate Palmolive, Atlas Honda and Fauji Fertiliser were the major gainers in a week market.
Oil stocks remained under pressure declining 6.6pc WoW due to falling international crude oil prices. Bank stocks declined 7.9pc during the week.