Despite starting robust in the first half of trading, 100 Index went on to close in red at day-end. Index during early hours broke the psychological barrier of 43000 points level but could not hold it’s own in the second half of the day's session, losing 81.77 points at close.
The Index has succumbed to a lack of triggers and heavy foreign selling.
Yesterday’s session was marked by mutual fund buying helping the index post modest gains at close.
Furthermore, positive news on the political front also bolstered investor sentiment. Caretaker Prime Minister asked president Mamnoon Hussain to announce the first session of assembly on August 13, where lawmakers will take oaths in a ceremony in Islamabad.
Oil & Gas Marketing Companies were in the limelight adding 28.12 points, whereas Fertilizer, Power Gen, Commercial Banks and Refinery stocks pushed the index downward in the second half of Friday’s session.
Among individual scrips, volumes were led by Pak Elektron with 17.717 million shares traded after a rumour of a World Bank (WB) led penalty on the company made rounds in the market. The news which turned out to be fake pushed the PAEL to close at its lowest circuit down 4.99pct.
Foreigners have offloaded more than $31 million in Pakistani equities during the last week after PTI won majority seats in the General Elections, 2018. However, local buying from mutual funds and insurance cos. has negated the offshoots emanating from foreign selling.
Performance in Asian markets was relatively dull as well amidst worsening US – China tensions, and falling Turkish Lira. Us high handedness in trade talks and the blatant negation of diplomatic mores have sent the global partnerships and agreements into tatters. China and U.S. have imposed tit for tat tariffs on a list of items in a war that seems far from ending.
West of Bosporus strait, Turkish strong-man Erdogan’s has been making all out effort to contain the declining currency. After suffering an onslaught during the last few months, Turkish Lira once again dropped around 12 per cent during Friday’s session as investors await the Turkish led talks with authorities in the US.