Stocks fall 240 points after overnight rally
KARACHI: The recovery at the stock market seen on Monday, proved shortlived as the KSE-100 index returned to the negative trajectory dragged down by 239.58 points (0.62 per cent) and closed at 38,612.37.
At the end of trading, the index had shed nearly half of the gains posted the previous day. Investor sentiments weakened as the finance minister talked about “calibrate moderation” of economy and the State Bank governor hinted at initial slowdown in the economy before getting better.
Investors thus discounted the news flow of International Monetary Fund team’s visit next month to finalise the bailout package. Other disconcerting issues included rising political noise, uncertainty over rupee parity and fear of further hike in power tariff.
The market opened with gains of 61 points and building up on Monday’s momentum, it hit the intraday high by 234 points. But the buying did not last long and the index succumbed to profit taking as investors’ interest waned, represented by trading volume of just 71m shares – down 28pc from the earlier day’s 100m shares. Figures released by the National Clearing Company showed foreign outflows on Tuesday at a minor $0.16 million.