Market watch: Bourse fails to keep Monday’s momentum

Benchmark KSE-100 index falls 120.21 points.

KARACHI: With oil and cement in the red, the stock market reversed the previous day’s gains and fell on Tuesday despite breaching the 25,000-point mark a few times during intra-day trade.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.48% or 120.21 points to end at 24,878.68 points.

JS Global stock analyst Faisal Bilwani stated that the equities closed negative below 24,900 points as investors booked gains and were selective amid risk of a possible aid cut from the United States over blockade of Nato supplies coming from and going to Afghanistan.

“Most names traded in the red with oil stocks and index-heavy financials dragging the index, however, Engro Corporation traded against the trend to close positive on excitement over prospects of cheaper gas supply to its fertiliser subsidiary,” he said.



“Cement shares generated volumes and closed lower as a decline in seasonal off-take pushed investors to trim positions.”

Fahad M Ali of Elixir Securities pointed out that the index tested the 25,000 level but failed to sustain it, closing down by 120 points.

“A statement by the United States regarding the blockade of Nato supplies caused some pressure in the market where the index was dragged down from the positive to negative zone. Nestle, MCB Bank and Fauji Fertilizer Company contributed 19, 16 and 13 points to the declining index.

Trade volumes rose to 177 million shares compared with Monday’s tally of 103 million shares.

Shares of 355 companies were traded on Tuesday. At the end of the day, 139 stocks closed higher, 192 declined and 24 remained unchanged. The value of shares traded during the day was Rs7.9 billion.



Pakistan International Airlines was the volume leader with 27.5 million shares, gaining Rs0.66 to finish at Rs8.75. It was followed by Fauji Cement with 13.6 million shares, losing Rs0.33 to close at Rs13.44 and BankIslami Pakistan with 11.5 million shares, losing Rs0.08 to close at Rs6.79.

Foreign institutional investors were net sellers of Rs215 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, December 11^th, 2013.

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