Market Watch: Five-day rally comes to an end

KSE’s benchmark 100-share index falls 79 points.

KARACHI: After a five-day upward trend that helped the bourse climb to levels not seen since June 2008, the stock market witnessed profit-taking across the board on Wednesday.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.6 per cent or 79.39 points to end at the 13,244.95 point level.

Decline in regional markets and commodity prices also affected the local bourse, Samar Iqbal Equity Dealer Topline Securities.

International markets were suppressed on the news of lower global oil prices which affected local oil sector blue-chip companies.

Oil and Gas Development Company, Pakistan Oilfields and Pakistan Petroleum declined by 1.3%, 0.5% and 1.7%, respectively.

Trade volumes gained to an impressive 318.6 million shares compared with Tuesday’s tally of 251 million shares.

National Bank of Pakistan gained 0.16% and traded decent volumes on post-result excitement. The bank’s record payout of Rs7.5 per share on Tuesday increased investor interest in the stock.

Cement stocks mirrored the broader market with the exception of Fauji Cement as speculators continue to churn as rumours of the company posting positive earnings in the current year, said analysts.

It was a day of second tier stocks with Jahangir Siddiqui and Company locked at its daily upper limit along with Arif Habib Corporation gaining 1.1%. After a long time, Lotte Pakistan PTA PA was in the limelight as investors bet on reversal of PTA margins post ban on cotton export by Indian Govt in a bid to save crop for local industry.

Fauji Cement was the volume leader with million shares 31.2million shares gaining Rs0.3 to finish at Rs5.0. It was followed by Jahangir Siddiqui and Company with 27.1million shares firming Re1 to close at Rs11.96 and Lotte Pakistan PTA with 25.0 million shares increasing Rs0.37 to close at Rs9.36.

Foreign institutional investors were buyers of Rs377 million and sellers of Rs90 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, March 8^th, 2012.