KARACHI:
The stock market plunged on Tuesday as the bourse felt regional market tremors on the back of concerns of radiation leaks from a nuclear plant in Japan following a massive earthquake.
The Karachi Stock Exchange (KSE) 100-share index recovered midday losses of 2.3 per cent and closed down 1.79 per cent or 216.14 points at 11,829.24 points.
Japan concerns hammered world stocks to their lowest point in nearly three months on Tuesday and fuelled a two per cent fall in oil prices.
US stocks tumbled more than two per cent at the open while Japanese benchmark index Nikkei-225 fell 10.6 per cent.
Rumours that foreigners were selling key oil and fertiliser stocks in the domestic market also dampened investor sentiment, said JS Global Capital analyst Jawad Khan.
Trading volume rose to 135 million shares compared with 77 million shares on Monday. Trade was dominated by second tier stocks.
Index heavyweight Oil and Gas Development Company bore the brunt of selling pressure because of talk of selling by foreign funds while Pakistan Oilfields and Pakistan Petroleum Limited were also on the receiving end and ended down 2.8 per cent and 1.6 per cent, respectively.
Fertiliser stocks witnessed similar fortunes with Engro leading the fall and closing down 2.9 per cent.
ICI Pakistan, a leading paint manufacturer, managed to close in the green due to local institutional interest, said Khan.
Shares of 356 companies were traded on Tuesday. At the end of the day, 70 stocks closed higher, 201 declined and 85 remained unchanged. The value of shares traded during the day was Rs5.68 billion.
Descon Oxychem was the volume leader with 13.9 million shares, gaining Rs0.23 to finish at Rs9.19. It was followed by Lotte Pakistan PTA with 8.87 million shares, falling Rs0.15 to close at Rs15.78 and Nishat (Chunian) Limited with 8.42 million shares, declining Rs0.74 to close at Rs28.29.
Published in The Express Tribune, March 16th, 2011.
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