KARACHI:
The stock market’s rally ended on Wednesday as investors opted to book profits with stock prices standing at inflated levels.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.55 per cent or 65.11 points to end at 11,868.17 points.
Steam fizzled out from the over-heated run-up that was initiated by the fertiliser sector on Tuesday, said Aziz Fidahusein and Company Research Head Hasnain Asghar Ali.
After Tuesday’s bull-run, Engro and Fauji Fertiliser Bin Qasim both closed down 2.6% and 1.7%, respectively on Wednesday. Three companies from the fertiliser sector had closed on Tuesday at their upper limit of the day as investors scrambled to pick up shares on the back of an increase in urea prices that paves the way for better earnings.
Foreign institutional investors were net sellers of Rs52 million worth of shares, according to data compiled by the National Clearing Company of Pakistan Limited. Foreign investors were said to be sellers of fertiliser shares while locals were buyers of energy and cement stocks, according to JS Global Capital.
Trade volumes fell to 83 million shares compared with Tuesday’s tally of 106 million shares.
Certain stocks from the fertiliser and banking sectors did manage to invite accumulation on dips and remained in the green zone, added Ali.
Renewed buying interest was seen in National Bank of Pakistan (NBP) on news regarding likely arrangement for converting banks’ loans into Pakistan Investment Bonds.
NBP was the volume leader with 8.74 million shares, gaining Rs1.77 to finish at Rs48.88. It was followed by Fauji Fertiliser Bin Qasim with 8.62 million shares, declining Rs1.07 to close at Rs60.7 and Fatima Fertiliser with 6.45 million shares, losing Rs0.29 to close at Rs19.69.
The value of shares traded during the day was Rs4.03 billion.
Published in The Express Tribune, October 6th, 2011.
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