Stocks edge lower on foreign sellingArchive
KARACHI: The stock market snapped the two-day rally and once again drifted into the red on Thursday. The KSE-100 index closed with a minor decline of 75.69 points (0.19 per cent) at 40,531.13.
Although the index took off to a firm start posting an early gain of 97 points, trading remained choppy the entire day with the KSE-100 moving back and forth in the range of intraday high and low by 256 and 208 points. Foreigners sold off equity worth $3.69 million. A leading broker said that it was due to two reasons: “The slow exit of foreign funds from the Emerging Markets due to the coronavirus and their selling of stake in a Faisalabad-based entity FM Textile Mills by around $1m daily.” Corporates were lead buyers of shares valued at $1.94m.
The ongoing negotiations with the International Monetary Fund on its review for the second tranche dissuaded investors from taking fresh positions. However, the reported agreement between Pakistan and the lending institution that there would be no mini-budget or a reduction in the tax collection target till FY20 end offered some comfort.