Stocks end week on a flat note.

KARACHI -- The stock market traded sideways during the outgoing week as investors remained undecided over the direction going forward. The index closed with a minor gain of 16 points (0.04 per cent) at 40,848.

Positive news flow on improvement of macro fundamentals - increasing foreign exchange reserves, rave review report from the International Monetary Fund and disbursement of second tranche of $452m - created some excitement. But Saudi FM and Chinese delegation's visit went unnoticed as the local and geopolitical situation kept market in a state of uncertainty.

The government found itself in difficult diplomatic position after Prime Minister Imran Khan cancelled his scheduled attendance at the Kuala Lumpur summit following his recent visit to Riyadh. Border skirmishes with India kept investors nervous.

Other negative was the concerns on the fallout of verdict on General Musharraf and the rollover week. Also the Christmas holiday and year-end season impacted volumes.

Foreign selling was witnessed at $2.9 million compared to net buy of $3.1m the earlier week. Outflow was noted in exploration and production worth $1.5m and commercial banks $0.7m. On the domestic front, major buying was reported by insurance companies $10.5m and mutual funds $7.2m.

Market participation declined due also to shortened four-session week. Average daily traded volume clocked in at 230m shares (down 23% WoW). Similarly, average daily traded value registered decline of 35pc WoW at $54m.

Sector-wise, positive contributions came from commercial banks, higher by 43 points, power generation and...