Stocks managed to stage a sharp recovery on the last trading day of the week as Kse-100 index gained 170 points by the session closing to clock at 42,504.76. The market sentiments were steered by the rising possibility of Pakistan’s exit from the Paris-based financial watchdog Financial Action Task Force’s grey list. The hopes rose after in line with FATF’s 27-point Action Plan, Pakistan’s parliament wrapped up the legislation required to steer the country out of global money-laundering and terrorism financing watchdog Financial Action Task Force’s (FATF) grey list by passing three bills at a joint sitting of the two houses amid a protest by the opposition lawmakers. Moreover, market sentiments were also driven by speculation over upcoming monetary policy by State Bank of Pakistan (SBP) which is to be held on 21st September i.e Monday. The last monetary policy was announced on June 25th, in which the SBP reduced the policy rate by 100 basis points to 7%. Since March, the interest rate has been drastically cut by a cumulative 6.25pc to pump maximum liquidity in the economy facing tough situation after emergence of Covid-19. The market is expecting the interst rate to remain unchanged as, according to the SBP, inflation outlook has improved while the domestic economic slowdown continues and downside risks to growth have increased.On Friday, KSE-100 Index witnessed a volatile session, as the index oscillated in both negative and positive territories. The index registered its intraday low at 42,234.59 after losing 100.17 points during the early session, however recovering its losses, the kse-100 index touched its intraday high at 42,554.84 after it gained 220.08 points. The index volumes slightly increased from 324.37 million shares recorded in the previous session to331.71 million shares, while the overall market volumes also increased from 508.69 million shares in the previous session to 516.13 million shares.The volume chart was led by Pakistan International Bulk Terminal Limited, followed by Unity Foods Limited and Fauji Foods Limited. The scrips exchanged 75.51 million, 45.28 million and 38.86 million shares, respectively. Sectors which lifted the index were Oil & Gas Exploration Companies with 75 points, Commercial Banks with 71 points, Fertilizer with 35 points, Automobile Assembler with 15 points and Transport with 13 points. Among the scrips, most points added to the index was by Oil & Gas Development Company Limited which contributed 43 points followed by Fauji Fertilizer Company Limited with 28 points, United Bank Limited with 27 points, Meezan Bank Limited with 20 points and Pakistan Oilfields Limited with 15 points.Sectors, which continued to add pressure and let down the index, were Cement with 25 points, Insurance with 11 points, Power Generation & Distribution with 10 points, Tobacco with 9 points and Chemical with 7 points. Among the scrips, most points taken off the index was by Kot Addu Power Company Limited which stripped the index of 19 points followed by Dawood Hercules Corporation Limited with 14 points Pakistan Tobacco Company Limited with 8 points, Engro Polymer & Chemicals Limited with 7 points and Lucky Cement Limited with 7 points. Global markets: Covid-19 resurgence weighed down sentimentsGlobal stocks witnessed a mixed trend on Friday as investors weighed in the economic repercussions of resurgence of covid-19 cases across globe. Cases of Covid-19 have now passed 30 million worldwide, resulting in more than 946,000 deaths. The World Health Organization warned on Thursday of a “very serious situation” arising in Europe as cases rise significantly across the continent, forcing a reimplementation of lockdown measures in certain regions.Moreover, sentiments were also driven by U.S, Federal Reserve announcement as Fed’s officials expect to leave interest rates near zero for years- through at least 2023 – and will tolerate periods of higher inflation as they try to revive the labor market and economy, based on their September policy statement and economic projections released Wednesday. Fed Chair Jerome Powell said officials did not expect to change course until the recovery was “very far” along. However, Powell warned the economic rebound could be at risk without more government spending. According to the projections released on Wednesday, bank leaders expect the US economy to shrink by 3.5% this year – less than the 6.5% decline feared in June.In Asia, stocks advanced on Friday as investors reacted to central bank developments. Chinese stocks led the gains, with Shanghai composite edging higher by 2.07% to about 3,338.09, followed by Hong Kong’s Hang Seng index was rising 0.47% higher, as of its final hour of trading. In Japan, the Nikkei 225 also advanced on the day, which closed 0.18% higher at 23,360.30 while South Korea’s Kospi index also rose 0.26% to close at 2,412.40.European stocks, however, edged lower on Friday, with travel and leisure stocks dropping leading the losses while the tech sector attempted to make some recovery. CAC-40 in France led the losses and closed 0.99% lower, while UK’s FTSE-100 and Germany’s DAX also closed fractionally lower.In U.S, Wall Street tried to recover from another sharp sell-off in major technology names. The market was also on pace for its first weekly gain of the month. During the early trading hours, Dow Jones Industrial Average was trading 0.1% lower, while S&P 500 was trading flat. The tech heavy Nasdaq Composite, however posted some early gains.