Research Analyst on 20/11/2009 (Karachi Stock Exchage)

Karachi Stock Exchage market is likely to consolidate before the announcement of monetary policy where if the central bank decides to cut rate by 50bps then market would sustain at current levels. However, this would invite deep correction, but on the other hand, if SBP slashes rate by at least 100bps then the main index would march towards the 10000-mark. Investors are advised that on 50bps reduction they should invest in those companies which give consistent dividends and if interest rates are reduced by 100bps then along with these companies they can invest in highly leveraged blue chip companies. They can also invest in second tier banking stocks. Market would be rangebound today.