Choppy week on PSX.

KARACHI -- Stock trading remained choppy for most of the sessions in the outgoing week as the KSE-100 index oscillated between the red and green, following the news flow. It closed on a flat note with a minor decline of 39 points (0.09 per cent) at 43,168.

In the early part of the week, investors resorted to profit-taking as domestic political developments gripped sentiments. The coalition partners of PTI expressed their dissatisfaction with the government which was feared to disturb the wafer-thin majority of the centre. Moreover, concerns over rising inflation kept participants' optimism under check.

However, positives on macro front included Fitch affirming Pakistan at 'B-' with stable outlook and a massive increase in foreign direct investment by 68.3pc in Jul-Dec'19 provided some support to the index.

Moreover, on Friday, foreign investment in T-bills recorded largest single day inflow of $536.1 million, taking their total stakes in treasury and Pakistan Investment Bonds to $2.26 billion in fiscal year-to-date which bodes well for the exchange reserves and cushioned the index dip.

Based on the National Clearing Company data, foreigners were net buyers of $2.81m. On the local side, banks were net buyers of $2.3m and Mutual Funds were net seller of $1.7m.

Foreign buying continued at $2.8m compared to net buy of $7m the preceding week. Their inflows were witnessed in sectors like exploration and production $1.4m and fertiliser $1.3m. On the domestic front, major selling was reported by insurance companies in the sum of $2.8m, followed by individuals offloading stocks worth $2.2m and mutual funds selling $1.7m.

Banks were net buyers of stocks valued at net $2.3m. Average daily...