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Stocks edge lower on foreign selling

Stocks edge lower on foreign selling

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.

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