Market watch: Stock market falls in dull session

Grim news on economic front subdues activity.

KARACHI:

The stock market continued its dull phase on Wednesday as volumes remained depleted while a major chunk of activity was confined to second tier stocks.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.17 per cent or 20.79 points to end at 12,317.15 point level.

Grim news on the economic front of decline in foreign direct investment during the first eleven months of fiscal 2011 coupled with 65% increase in government borrowing from various financial institutions for budgetary support also subdued participants.

Global sell off in equity markets and fall in commodity prices also pulled the local bourse down, according to Topline Securities equity dealer Samar Iqbal.

Trade volumes remained unchanged at 54 million shares traded compared with the preceding day.

Foreign institutional investors’ (FII) activity remained muted while locals were seen active in energy and fertiliser stocks, according to analysts.

FII were net sellers of Rs2 million during the trading session, according to NCCPL.

Fauji Cement right shares were the volume leader with 4.62 million shares losing Rs0.01 to close at Rs0.02.

Fatima Fertiliser was second in the volumes chart with 4.12 million shares on account of news that the plant will begin production from July 1. It was followed by Bank of Punjab with 4.05 million shares gaining Rs0.09 to close at Rs7.12.





Published in The Express Tribune, June 16th, 2011.