The stock market closed lower on Wednesday after oscillating in the positive and negative territory throughout the session.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.14 per cent or 16.63 points to end at 11,746.09 point level.
Selling spree was witnessed today in fertiliser and oil scrips, said JS Global Capital analyst Mujtaba Barakzai.
Consolidation started at the beginning of the trading session after news that the government has withdrawn excise officials from Engro’s new urea plant, added Barakzai. Excise department officials on Monday night reached Engro Fertilizer’s plant at Deharki and blocked any consignment to leave the plant.
Engro was very volatile as the share hit a high and low of Rs125.44 and Rs120.80, respectively.
Trade volumes fell to paltry level of 64 million shares compared with Tuesday’s tally of 84 million shares.
Investors eagerly awaited October inflation number, however, at 11% CPI inflation they were not impressive as investors expected them to stand at 10.3%.
Foreign institutional investors were net sellers of Rs94 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.
Pakistan State Oil gained 0.24% and covered day losses at very end of trading on rumours that the government is taking steps to tackle the circular debt, according to analysts.
The entire fertiliser sector remained in the limelight – as they took four of the top five spots on the highest traded share list – on news that Engro Corporation has rolled back the recent urea price increase of Rs400 per bag.
KSE will remain closed from 7 to 9 November on account of Eidul Azha and Iqbal Day, according to a statement issued by the bourse. Fatima Fertilizer was the volume leader with 8.6 million shares losing Rs0.28 to finish at Rs25.01. It was followed by Wateen Telecom with 8.13 million shares gaining Rs0.12 to close at Rs2.08 and Engro Corporation with 4.75 million shares declining Rs0.15 to close at Rs123.99.
Published in The Express Tribune, November 3rd, 2011.
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