LAHORE - Volatility prevailed in the stock market as the 100-share index remained range-bound on Thursday, trading between -50 to +373 points, and finally closing up 300 points at 42,847 points.

However hefty buying was witnessed in the eleventh hour as investors took the opportunity to accumulate stocks on attractive levels. Volume traded was slightly better than Wednesday’s, where PAEL (+1.10%) was the volume leader for the day with 14m shares of the stock changing hands. On the economic front, the ECC approved the Prime Minister's package of incentives for exporters of textile and non-textile. The components of the export package are estimated to provide competitive benefits of around Rs65b annually. OGDC (+1.79%), MCB (+2.02%), POL (+1.82%) and HBL (+1.02%) were the major leaders for the day cumulatively contributing +124 points to the index.

Banking sector led the gains as sector heavyweights such as MCB (+2.02%), BAFL (+1.72%), FABL (+4.76%) and HBL (+1.02%) closed in the green zone. Investors' interest was witnessed in the E&P sector despite crude oil prices edging lower in the international market. OGDC (+1.79%), POL (+1.82%) and PPL (+1.22%) were the major movers of the aforementioned sector.

Experts said that provoked by domestic political crisis and global equities sell off, Pakistan stocks nosedived 6pc in month of May 2018, that is highest loss in last 7 months. Global sell off in equities was witnessed amid 1) rise in bond yields in America, 2) political crisis in Italy, and 3) strengthening of US dollar against major currencies especially Euro. Resultantly, Pakistan foreign portfolio investment witnessed 9-month high outflow of $73m during May 2018, while YTD outflow remains at $59m.

However, in yesterday's session international market recovered as Italy political turmoil receded after the news of two anti-establishment party’s efforts to form a coalition government and successful auctioning of five and ten years bonds in Italy. Ensuing this, Pakistan equities turned green and posted return of 0.7pc or 300 points.