Market watch: Stocks tumble, biggest fall in six months

KARACHI: The stock market tumbled more than 300 points, the biggest daily fall in nearly six months, on a decline in regional markets and local uncertainty.

The Karachi Stock Exchange’s benchmark 100-share index ended 2.74 per cent, or 315.74 points, lower at 11,123.52, its lowest close since December 1, on turnover of 156.84 million shares. The market has nosedived 6.8 per cent this week.

The bearish spell was due to the political uncertainty as Pakistan Muslim League-Nawaz has decided to part ways with Pakistan Peoples Party in Punjab, said JS Global Capital analyst Arsalan Khan.

This negativity was further fuelled by the ongoing Middle East crisis which has not only created uncertainties in the political sphere but also on the economic front as oil prices keep rising, said Khan.

However, crude price sank from a two-and-a-half-year high near $120 a barrel on Thursday in a late-day rout, dragged down by an unsubstantiated rumour that Muammar Gaddafi had been shot and Saudi Arabia’s assurances it can offset Libyan supply disruptions.

Foreign fund managers kept on selling following the decline in regional markets, said analysts.

Majority of the main board items were near their lower limits. The number of shares traded almost doubled to 157 million compared with the preceding day’s 80.2 million.

Shares of 655 companies were traded on the last trading session of the week. At the end of the day, 367 stocks closed higher, 246 declined and 42 remained unchanged. The value of shares traded during the day was Rs5.84 billion.

Lotte Pakistan PTA was the volume leader with 37.6 million shares, falling Rs0.99 to finish at Rs14.08. It was followed by Arif Habib Corporation with 13.06 million shares, declining Rs0.92 to close at Rs18.97 and Fauji Fertiliser Bin Qasim Limited with 6.89 million shares, losing Rs0.15 to close at Rs39.37.

Published in The Express Tribune, February 26^th, 2011.