KARACHI: The stock market fell on Wednesday as violence and strike calls crippled the financial capital for the second consecutive day.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index declined 0.77 per cent or 109.26 points to end at the 14,032.82 point level.
The correction came after the city once again descended into anarchy and the worsening law and order situation over the last couple of days as well as over stalemate meeting between cement manufacturers in Tuesday’s meeting, said JS Global Capital analyst Mujtaba Barakzai. DG Khan Cement and Lucky Cement were down 1.3% and 1.2%, respectively.
Interior Minister Interior Rehman Malik ordered the formation of an investigation team to probe the incident that left at least 13 people dead and over 35 injured.
Trade volumes stood at 176 million shares compared with Tuesday’s tally of 179 million shares. Foreign institutional investors were buyers of Rs308 million and sellers of Rs240 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.
Unresolved Nato supply issue was also one of the factors which dragged the market, added Barakzai. Investors also remained cautious due to volatility in global markets.
Engro Corporation gained 1.4% on cheap valuations while Fauji Fertilizer Company and Fauji Fertilizer Bin Qasim followed by gaining 0.04% and 1.5%, respectively. The value of shares traded during the day was Rs5.76 billion.
Bank AlFalah was the volume leader with 16.88 million shares gaining Rs0.53 to finish at Rs17.77. It was followed by Pakistan Telecommunication Company with 15.67 million shares declining Rs0.20 to close at Rs15.82 and DG Khan Cement with 14.97 million shares falling Rs0.55 to close at Rs41.37.
Published in The Express Tribune, May 24th, 2012.