Stocks turn in positive performance
KARACHI: Stocks managed to break the five-day losing streak as the KSE-100 index recovered marginal 25.64 points (0.07 per cent) and close at 35,631.06. Although the index opened positive and made up to intraday high of 200 points, much of the gains were underpinned by upside in banking stocks.
Traders believed that the International Monetary Fund would propose further policy tightening, which shored up the price of banking stocks. Additionally, the sector was supported by State Bank’s auction calendar which targets borrowings of up to Rs4.7 trillion from private banks in May-July.
The index remained highly volatile during the first session of Ramazan and witnessed low volume due to shortened trading hours and lack of investor interest. Uncertainty loomed large on the outcome of IMF talks; the upcoming budget; Financial Action Task Force decision and later the MSCI review.
Analysts at Topline stated: “Investors are waiting for key economic developments in the coming months where an agreement with IMF can provide short-term relief to index. Further, this programme will be a road map in bringing fiscal discipline in economy.”