Market watch : Stock market mirrors city’s deserted look

Foreign selling of Rs179 million witnessed during trade session.

KARACHI:

Trading levels fell to a ten-month low at the Karachi Stock Exchange on Friday as violence continues in the city.

Trade volumes fell to paltry level of 30 million shares compared with Thursday’s tally of 65 million shares.

Dull trading session was witnessed owing to a ‘mourning call’ by leading opposition party, Muttahida Qaumi Movement as a protest against on going target killing of its political workers, said analysts. More than 90 people have been killed during the last four days in a wave of violence that has gripped the financial capital.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.41 per cent or 51.28 points to end at 12,390.12 point level.

“Benchmark index fell, however, if we exclude illiquid stock Nestle then the benchmark index remained flat,” said Topline Securities Senior Manager Equity Sales Mohammad Rizwan.

Local institutions preferred to stay on the sidelines owing to prevailing political uncertainty, said JS Global Capital analyst Jawad Khan.

Moreover, rumours of foreign funds activity in National Bank and Engro in the second half failed to lift the already beleaguered sentiments, added Khan.

Foreign institutional investors were gross buyers of Rs240 million and net sellers of Rs252 million during the last trading session of the week, according to data maintained by the National Clearing Company of Pakistan Limited.

Jahangir Siddiqui and Company was the volume leader with 5 million shares gaining Rs0.18 to finish at Rs7.53. It was followed by Bank of Punjab with 4.23 million shares firming Rs0.11 to close at Rs6.77 and National Bank of Pakistan with 3.26 million shares declining Rs0.07 to close at Rs53.55.

Published in The Express Tribune, July 9^th, 2011.