KARACHI: Stocks witnessed correction on Thursday as the bulls withdrew after tossing the KSE-100 index to yet another all-time intra-day high at 31,856.33 points.
The index moved in a broad range of 464 points, yet by the close of the market, the benchmark settled lower by 187.38 points or 0.59pc at 31,441.82 points.
Although brokers termed the index decline a healthy correction in an overbought market, several analysts blamed the uncertainty over the privatisation process after the withdrawal of offer of 10 per cent shares in OGDC on the nod from IMF and the worry caused by conflicting signals of what was about to be revealed in the SBP Monetary Policy due on Nov 15 as reasons for halt in the bull run.
Analyst Iqbal Dinani at BMA Capital Management forecast a cut in discount rate by 50 to 100bps on the back of “benign inflation expectations for the next two quarters.”
Half the market went with that assertion but several analysts were hinting at the IMF and government’s earliest indicators which suggested that the SBP could opt for a tight monetary policy in FY15 with little or no change in discount rate.