Stocks stage 435-point rally
KARACHI: The stock market staged a rally on Wednesday that propelled the KSE-100 index by 435.05 points (1.46 per cent) to close at 30,244.73.
The major reason for the rejuvenation of investor interest was attributed by most market leaders to the lower Consumer Price Index (CPI) numbers for the month of August which clocked in at 10.50pc after revision in weights by Pakistan Bureau of Statistic. However, when calculated on the old base, the CPI for August stood at 11.60pc. The lower CPI numbers were thought to enable interest rate cuts.
In the early hours, the market saw almost distress selling in shares of banking sector which dragged the index down to the intra-day low by 342 points. The index managed to recoup all the losses in the late session peaking to intra-day high by 568 points.
Investors pushed aside the worries over the geo-political situation; the concerns on upcoming Financial Action Task Force review in Bangkok and poor economic situation.