The stock market continued the downward trend on Tuesday amid tensions in Karachi over frequent eruption of violence.
The Karachi Stock Exchange (KSE) 100-share index fell 0.66 per cent or 79 points to end at 11,956.89 points.
Protesters had set fire to at least 25 buses and trucks in the city since Monday after a Muttahida Qaumi Movement (MQM) worker was gunned down. Trade volumes fell 33 per cent to a paltry 50.7 million shares owing to bad law and order situation compared with Monday’s tally of 76.13 million shares.
Overall, the banking and fertiliser sectors remained weak as locals feared that the political situation following Osama’s killing could turn negative for the country on fears of rising attacks from pro-Taliban forces, said Elixir Securities equity dealer Sibtain Mustafa. Osama bin Laden, the most-wanted terrorist, was gunned down by US Special Forces in Abbotabad on Monday.
Major oil stocks remained in the red throughout the day despite news that the finance ministry was likely to release Rs120 billion in a few days to settle the circular debt. Among refineries, National Refinery Limited closed down 0.9 per cent despite an increase in prices of lube base oil by Rs3 per litre.
The market lacked excitement after corporate result announcements came to an end, said JS Global Capital analyst Jawad Khan. Investors are now cautiously monitoring news flow related to the budget, expected to be announced later this month, added Khan.
Oil and Gas Development Company that had been steering the market failed to carry its charisma on rumours of local selling.
Shares of 356 companies were traded on Tuesday. At the end of the day, 74 stocks closed higher, 187 declined and 95 remained unchanged. The value of shares traded during the day was Rs1.78 billion.
Lotte Pakistan PTA was the volume leader with 9.59 million shares, falling Rs0.18 to finish at Rs15.96. It was followed by Fatima Fertiliser Company with 3.99 million shares, gaining Rs0.18 to close at Rs12.83 and SilkBank Limited with 2.77 million shares, losing Rs0.14 to close at Rs2.5.
Published in The Express Tribune, May 4th, 2011.
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