KARACHI: Stocks faltered once again in the outgoing week with the KSE100 index ceding 320 points, or 0.7 per cent, to close at 47,170 points.

Lack of positive triggers kept the participants on the sidelinesrepresentedbythe trading volume which stood at an average daily turnover of 307m shares, 37.8pc lower than the earlier week. The dreaded lockdown by the Sindh government did not come to pass and there was no disruption in business and industrial activities on that account. But the investors continued to monitor the situation as the pandemic positive cases had hardly receded despite the vaccination drive picking up a good pace.

Worries emerged on the political front after the deterioration in the situation in Afghanistan following the withdrawal of US army.

Moreover, regardless of some recovery in the outgoing week, the recent depreclation of the rupee against the dollar kept the momentum weak.

On the positive side, the government approved incentives for the technology sector, textile exports were up 21pc in FY21 and the country witnessed higher remittances in July ($2.7bn) keeping the growth trend alive for over a year.

Investors also took heart from the expectations of fresh funds from IMF ($2.8bn) under the new SDR allocations several companies and a couple of banks, including corporates under the fold of the Attock group of companies came up with improved results that keep investors` sentiments positive.

Foreign buying continued this week, clocking in at $4, against a net buy of $3.1m earlier week. Buying was witnessed in technology ($4.2m), banks ($0.9m) and fertiliser ($0.3m).

Going forward pundits were divided over the performance of the market.

The tone nonetheless was in favour a bearish outlook.

The horrifying conditions in Afghanistan where the withdrawal of US army would be completed by the end of the current month and would most likely be replaced by the feared Taliban which was slightly short of capturing the country.

It was a worrisome matter for Pakistan for no one was sure of the kind of relationship that may develop between Pakistan and the new administration. The second major issue was the ongoing fourth wave of Covid-19 and its impact, regardless of the vaccination drive that was thankfully going on successfully throughoutthe country.

On the economic side, there was uncertainty over the IMF review, likely to start from September. The only major positive was the result reporting season where investors` interest may remain by the individual performance of various reporting companies. Any surprises in profit and dividend distribution could bolster investor interest in those stocks.