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Resilient Karachi stocks recoup losses with 279.48pts, on course to cross 32000pts

KARACHI: The Karachi Stock Exchange recouped its losses of previous two days by gaining 279.48 points on the last day of trading on Friday.
On Thursday, panic gripped the Karachi Stock Exchange after bears assailed the market, pushing investors to book profit in the lead of mutual funds. At least 517.25 points or 1.63 percent of cash had been washed away and KSE-100 index, which started at 31,755.29 points closed at 31,239.04. According to experts, various reasons can be quoted for the crash, including confusion over the clients’ cash held by KASB Securities,provocative statements by Pakistan Awami Tehreek chief Dr Tahirul Qadri and Pakistan Tehreek-e-Insaf chief Imran Khan, and interest in mutual fund.
Earlier, the KSE-100 index shot up to new heights, crossing over 32,000 points as well as reflecting increase in the volumeof trade as investors at the stock market seemed to take the issue of KASB Securities all in their stride. Later, portfolio inflows stood at $2.55 million and the mutual funds recorded a net sale of stocks worth $8.46 million.
According to analysts, the current account deficits for July-Oct 2014 reached $1.76 billion, playing their part in creating bearish trends in the stock market while political uncertainty due to confrontation between the government and some opposition parties had also shed its negative impact on the market. The news of government’s intention to reduce prices of petroleum products next month and Standard and Poor’s rating of a stable outlook of the economy could not bring any positive change in the market on Thursday.
The country is bracing for crisis after crisis, but no one in the government and the opposition is ready to budge from its settled position and it seems the government this time is not in a mood to show a sign of leniency toward the protesting parties. Interior Minister Chaudhry Nisar Ali Khan has warned that the ‘saboteurs’ will be dealt with an iron hand while Information Minister Pervaiz Rashid is also not less harsh in his statements hurling warning shots on the opposition parties.
However, analyst still hope that the stock market is resilient and will bounce back as well as the nation will hear good news of the positive outcome of talks between the government and the protesting parties.