KARACHI: Stocks staged a grand rally on Wednesday after 10 consecutive sessions of falling equity prices that saw the KSE-100 index shed as many as 2,240 points and pushed the market in yielding negative returns. The index bounced back by 683.56 points (2.16 per cent) to close at 32,392.92.
The effective explanation provided by major market participants was that the stocks had turned attractive and thus lured investors to buy at discounted prices.
Be that as it may, the belief that the market was sinking on account of foreign selling came under a shadow of doubt for the foreign funds continued to offload equity worth $6.41 million, taking the year-to-date outflow at $286.09m.
Several market watchers wondered if the stock meltdown had anything to do with the ‘Securities Brokers Regulations 2015’, the draft of which was released by SECP on Nov 6 for feedback and was considered ‘harsh’ by most participants.
“Could the positive momentum be attributed to the regulators’ relaxation on those rules?” a major investor following the event asked.