Business

Market Watch: KSE-100 dips by 79 points to two-month low

Investors book profits over fears of European debt crisis spreading to US banks.

Express November 18, 2011

KARACHI: The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell to a two-month low by 0.66% or 79.35 points to close at 11,913.42 on Thursday after remaining stagnant for three days in a row.

Concerns that the European debt crisis could spread to US banks prompted investors to book profits, dealers said. “Bearish activity was witnessed at the KSE, as global markets fell following a Fitch report that stated the EU debt crises could spread to US banks,” said Ahsan Mehanti, Director at Arif Habib Investment Ltd. World stocks hit a one-week low on Thursday and German Bunds rose as Spain paid more to sell 10-year debt than at any time since 1997, sparking fears it may join other euro zone peripheral states in being unable to finance itself.

Fitch Ratings warned that it may reduce its “stable” rating outlook for US banks with large capital markets businesses because of contagion from problems in troubled European markets.

Abdul Azeem of Invest Capital said, “KSE-100 index remained on the declining path and closed at 61.8% retracement level. We recommend sell at the current levels”.

Turnover fell to 28.66 million shares, compared with 51.34 million shares traded on Wednesday. Shares of 316 companies were traded during the second last session of the week. At the end of the day, 57 stocks closed higher, 146 declined while 113 remained unchanged. The value of shares traded during the day was Rs3.10 billion.

Fatima Fertiliser was the volume leader for the second day in a row with 4.74 million shares, losing Rs0.70 to finish at Rs23.16. It was followed by Fauji Fertilisers with 1.87 million shares, losing Rs1.85 to close at Rs181.78 and Pak Oilfields Limited with 1.43 million shares, gaining Rs2.35 to close at Rs363.45.

Sanofi-Aventis was the major gainer of the day as its share prices increased by Rs4.45 to close at Rs145, followed by Mitchells Fruit which gained Rs3.80 to close at Rs83. Major losers of the day was Unilever Pak Ltd which lost Rs64.40 to close at Rs5527.60 followed by Nestle Pakistan share price which declined by Rs31.11 to end at Rs3002.67 on Thursday.

Published in The Express Tribune, November 18^th, 2011.