KARACHI:
The stock market closed on a negative note amid low turnover as political noise in the country pushed participants to book profits.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.25 per cent or 29.17 points to end at 11,839 points.
Cement stocks remained positive after manufacturers increased prices by Rs15 per bag to protect their profit margins, said Elixir Securities equity dealer Sibtain Mustafa.
Lucky Cement rose 1.29% to Rs76.02 while DG Khan Cement gained 1.84% to close at Rs21.53. Supreme Court’s verdict on Karachi’s law and order situation and sit-in by Pakistan Muslim League-Nawaz in front of presidency kept investors away from the market.
Trade volumes fell to a paltry 62.8 million shares compared with Wednesday’s tally of 83 million shares.
Moreover, fertiliser stocks underwent profit-taking as rumours about the government deciding to take action against the hike in urea prices forced heavy selling in Fauji Fertiliser Company and Fauji Fertiliser Bin Qasim Limited, said Mustafa. Financials were also down on selling with MCB leading the pack.
The stock market is expected to remain positive in the near term because of a high possibility of discount rate cut in the monetary policy on Saturday, Mustafa said.
Foreign institutional investors (FII) were net sellers of Rs81.3 million worth of shares, according to data compiled by the National Clearing Company of Pakistan Limited. FII’s were said to be sellers in energy stocks while locals were buying cement and banking shares, according to JS Global Capital.
Shares of 382 companies were traded on Thursday. At the end of the day, 117 stocks closed higher, 159 declined and 106 remained unchanged. The value of shares traded during the day was Rs3.24 billion.
National Bank of Pakistan was the volume leader with 5.72 million shares, gaining Rs0.03 to finish at Rs48.91. It was followed by DG Khan Cement with 5.29 million shares, firming Rs0.39 to close at Rs21.53 and Fauji Fertiliser Bin Qasim with 4.25 million shares, declining Rs0.38 to close at Rs60.32.
Published in The Express Tribune, October 7th, 2011.
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