Stocks stay flat as investors book profits
KARACHI: Following the massive recovery of 7.65 per cent last week, which represented the highest weekly increase in 10 years, the stock market on Monday consolidated as the KSE-100 index closed almost flat at 35,697.37, shedding a minor 6.44 points (0.02pc) after a volatile trade.
The stocks took off to a positive start building on last week’s momentum and the index rose to intraday high by 188 points. However, investors who had bought early last week switched positions to book profit earned which pulled the index to intraday low by 93 points. The first day of the futures rollover week also came into play when activity is usually seen to slow down.
Market sources affirmed that the investor interest in low-priced equity remains, but the news flow of a tough budget dissuaded them from taking fresh positions. There was some concern over the continuation of corporate tax rate cut as a departure from 1pc reduction every year until it reaches 25pc. Withdrawal of tax exemptions given to various sectors also kept investors guessing.