KARACHI: Stocks managed to skip out of the red as the KSE-100 index posted a minor gain of 38.40 points (0.14 per cent) on Thursday to settle at 27,267. That lifted the index out of its six-year low of 27,229 seen a day earlier and snap the trading halts seen in as many as eight sessions in the past two weeks.

In an initial reaction, the bourse cheered the positive measures taken by the government to support the economy and the capital markets. Those included abolishment of Capital Value Tax (CVT) on capital market transactions in addition to previously announced plans where bank borrowing for Asset Management Compa­nies was increased to 360 days. In addition to the fiscal package, the State Bank cut the interest rate by 150 basis points, which complemented the just 75bps decrease in the regular bi-monthly monetary policy committee a week ago.

The regulators also imposed some restrictions on short selling. Analysts said the increase in international crude prices and approvals of financial support by the global financial institutions to fight the coronavirus also helped the stock market avoid a major fall.

The KSE-100 index climbed to intraday high by 963 points. However, the dread of COVID-19 and its negative impact on the economy; hot money outflows and rupee weakness forced investors to move out of risky assets. For a moment before the close, the index dipped in the red to intraday low by 182 points but managed to emerge and close almost flat.

Overall volume stood at 187 million shares while value traded value amounted to $33m. Among scrips, Engro Corporation, higher by 3pc, Habib Bank 3.5pc, Hub Power 2pc, Engro Fertilisers 2.6pc, Bank AL Habib 1.8pc and Meezan Bank 7.3pc were lead gainers.

Among banks, Habib rose 3.5pc, MCB 0.8pc, Alfalah 1.4pc and Bank of Punjab 5.1pc while cement remained under pressure where Cherat was down 7.5pc, Pioneer 7.5pc and Kohat 7.5pc closed on their lower locks.

Published in Dawn, March 27th, 2020