Stocks manage modest gains on late buying
KARACHI: The stock market was on a rollercoaster ride for the second day amid investors’ hopes and despair over the monetary tightening. The KSE-100 index settled a step higher by 9.97 points (0.03 per cent) at 32,981.99.
The index opened on a positive note and remained volatile throughout the session as investors continued to consider the impact of State Bank rate rise by 100 basis points announced a day earlier.
The hike was in line with consensus forecast and the investors were also encouraged as many deciphered signals by SBP of an end of monetary tightening. The index therefore opened in the positive and shot up to intraday high by 409 points.
At midday, bulls were however chased away as investors decided to sell the rally with the index hitting intraday low by 137 points. Some buying by value-hunters towards the end of trading helped it bounce back and close flat. Foreign investors bought stocks worth $0.46 million, while selling by mutual funds slowed down to $1.41m on Wednesday.