Market watch: Bourse continues to fall in line with world markets

KSE-100 index ended 126 points lower on Wednesday.


Express February 23, 2011

KARACHI: The bourse continued to tumble on foreign selling as stock markets around the world remained under pressure from the Middle East crisis.

The Karachi Stock Exchange benchmark 100-share index ended 1.08 per cent or 125.96 points lower at 11,523.42 on Wednesday – its lowest closing since December 7, 2010.

Foreigners sold shares worth $3.16 million on Tuesday, with more selling expected in the days to come, according to analysts.

World stocks fell further from recent 30-month highs as unrest in Libya continued. Wall Street suffered its worst day since August on Tuesday as the turmoil in oil-exporting Libya gave investors an excuse to sell stocks and consolidate positions after a rally that had driven world stocks six per cent higher this year.

The MSCI world equity index – a basket of leading world stock exchanges – was down 0.15 per cent on Wednesday.

Local investors also sold shares as deteriorating internal and external political situation took its toll on the sentiments, said JS Global Capital analyst Mujtaba Barakzai.

The political committees have failed to make any tangible progress on the economic reforms agenda and a further delay in announcing a strategy will hurt investor sentiment, added Barakzai.

Tensions also remained between Pakistan and the US over the fate of Raymond Davis, a US official arrested for killing two men in Lahore on January 27.

Shares of 655 companies were traded on Wednesday. At the end of the day, 92 stocks closed higher, 172 fell and 391 remained unchanged. The value of shares traded during the day was Rs4.12 billion.

Bank of Punjab was the volume leader with 12.13 million shares, gaining Rs0.43 to close at Rs7.08. It was followed by Lotte Pakistan PTA with 9.43 million shares, losing Rs0.38 to close at Rs15.02 and Fauji Fertiliser Bin Qasim with six million shares, falling Rs0.62 to close at Rs39.35.

Published in The Express Tribune, February 24th, 2011.

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