KARACHI:
The stock market closed below the 11,000-point mark, levels last seen in November 2010, over speculations regarding Supreme Court’s decision on NRO case.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index dropped 0.97 per cent or 107.13 points to end at the 10,933.18 point level on Tuesday.
The Supreme Court warned President Asif Ali Zardari and Prime Minister Yousaf Raza Gilani of disqualification for defying the implementation of the NRO verdict.
Strong language used by courts against the current administration kept investors sidelined, said analysts. With the government and the judiciary evidently on a collision course, investors are eagerly following developments on the political front and ignoring fundamentals.
Trade volumes gained significantly when compared with Monday’s tally of 21 million shares but were still unimpressive at 44 million shares.
Index heavyweight Oil and Gas Development Company kept the index volatile in late trade with local selling evened out by institutional buying, said JS Global Capital analyst Umer Ayaz. Fauji Fertilizer Company and Fauji Fertilizer Bin Qasim Limited remained closed in the red despite a Rs165 increase in urea prices announced on Monday.
Foreign institutional investors were net sellers of Rs25 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.
Shares of 329 companies were traded on Tuesday. At the end of the day 52 stocks closed higher, 102 remained unchanged and 175 declined, dragging the index down along with them. The value of shares traded during the day was Rs1.77 billion. Habib Sugar was the volume leader with 4.45 million shares declining Rs0.76 to finish at Rs22.02. It was followed by Hub Power Company with 4.41 million shares gaining Rs0.09 to close at Rs33.68 and Lotte Pakistan PTA with 3.94 million shares losing Rs0.30 to close at Rs9.84.
Published in The Express Tribune, January 11th, 2012.
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