Banks help index cross 40,000 points
KARACHI: The recovery drive on the stock marked entered its fourth successive day where the benchmark KSE-100 index gained 395.88 points (0.99 per cent) to close at 40,271 points on Friday.Trading took a depressing start as the index fell to intraday low by 24 points. Investors were nervous over the developing political scenario where the former PM Nawaz Sharif and his daughter were to return to the country in the evening.
But the local and foreign investors soon shrugged off the fear and jostled to take positions in blue-chip banking stocks. Market expected the State Bank of Pakistan to raise the policy rate by 50-150 basis points in the monetary policy for the next two months, due to be announced on Saturday (today).
Analysts concurred that the rate would be raised in a bid to restrain domestic demand and overcome the external account challenges. Arif Habib Ltd stated that the foreign investors, who were selling off the banking stocks till a day ago, surprised the market by aggressive buying in banks.