KARACHI: The Karachi bourse underwent some adjustments when it opened after a long weekend to political turmoil in the city. Investors offloaded positions and booked profits in overbought stocks, and the majority of activity was confined to second and third tier scrips.
“Security unrest in the city, fall in rupee-dollar parity ahead of International Monetary Fund loan repayments due this month, uncertain global stocks and commodities, limited foreign interest and rising political uncertainty played a catalyst role in bearish sentiments,” said analyst Ahsan Mehanti from Arif Habib Corp.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index lost 0.18% or 29.59 points to end at the 16,213.68 points level. Trade volumes were lower at 149 million shares compared with Thursday’s tally of 153 million shares. The value of shares traded during the day was Rs3.52 billion.
“The oil and fertiliser sectors remained under pressure, while some cherry picking was seen in the cement sector,” reported Topline Securities equity dealer Samar Iqbal. “Jehangir Siddiqui & Company continued to close at its upper cap after the Pakistan International Container Terminal sale recorded last week.
Shares of 367 companies were traded on Monday. At the end of the day 162 stocks closed higher, 145 declined while 60 remained unchanged.
“Engro, after trading on the market average for most of the day, saw some selling pressure and ended the day down by 3.6% after news of gas curtailment to the Dawood Hercules urea plant,” informed JS Global analyst Shakir Padela. “This reduces the chances of Engro being able to get gas from the Sui Northern Gas Pipelines network in the coming winter season. DG Khan Cement managed to close the day up by 1.1% on expectation of better-than-expected off-take numbers.”
JS Bank was the volume leader with 17.50 million shares gaining Rs0.54 to finish at Rs6.45. It was followed by Azgard Nine with 17.37 million shares gaining Rs0.54 to close at Rs7.59 and Fauji Cement with 11.49 million shares gaining Rs0.11 to close at Rs6.64.
Foreign institutional investors were net sellers of Rs66.98 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 13th, 2012.
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