Market Watch: Bourse plummets in gloomy session

KSE’s benchmark 100-share index drops 85 points.

KARACHI:

Investors decided to remain away from the bourse resulting in a gloomy session with not much activity on Monday.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index dropped 0.76 per cent or 85.05 points to end at the 11,040.30 point level.

Activity was low as investors remained cautious and sidelined on heightened political noise, said Elixir Securities equity dealer Nazim Abdul Muttalib. The government and army seem to be headed for yet another confrontation and investors continue to follow the wait-and-watch strategy and are in no rush to build any new positions, added Muttalib.

Trade volumes fell to the alarming level of 21 million shares compared with Friday’s already dismal tally of 39 million shares. Energy heavyweights Oil and Gas Development Company and Pakistan Petroleum came under selling pressure as rumours of foreign selling persisted in the market, said analysts. OGDC dropped 1.3% to close at Rs136.01.

Foreign institutional investors were highly active as they were buyers of Rs65 million and sellers of Rs90 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Even news regarding Fatima Fertilizer following Engro by increasing its urea price could not generate any excitement.

Shares of 302 companies were traded on Monday. At the end of the day 70 stocks closed higher, 112 declined while 120 remained unchanged. The value of shares traded during the day was Rs845 million.

Fatima Fertilizer was the volume leader with 2.70 million shares declining Rs0.35 to finish at Rs22.66. It was followed by TRG Pakistan with 2.13 million shares losing Rs0.08 to close at Rs1.07 and Lotte Pakistan PTA with 1.32 million shares gaining Rs0.09 to close at Rs10.14.

Published in The Express Tribune, January 10^th, 2012.