Benchmark KSE-100 index falls 285.76 points. PHOTO: AFP/FILE
At close, the Karachi Stock Exchange (KSE) 100-share index recorded a fall of 0.87% or 285.76 points to end at 32,682.50.
Topline Securities in its report said declining international oil prices coupled with devaluation of Chinese yuan rattled global markets. The local bourse was no different as the benchmark KSE-100 index declined 286 points.
“Pakistan Oilfields Limited (POL) closed at its lower limit (down 5%) while Pakistan Petroleum Limited (PPL) and Oil and Gas Development Company (OGDC) declined 4.5% and 3.8% respectively in today’s trading,” said the report.
It added stocks of pharmaceutical companies topped the charts on the back of improved sales and earnings expectations going forward. Resultantly, Ferozsons Lab closed up 5% and Searle Company increased 4.9%.
JS Global analyst Ahmed Saeed Khan said negativity prevailed in the trading session in line with the trend in regional and global markets. “Equities in China fell 7%, triggering the new circuit-breaker rule under which the market is shut if it falls by that quantum,” said Khan. “The slump triggered renewed panic in global markets.”
Khan added world crude oil prices dropped over 5% intraday, thus keeping the entire oil sector under pressure. The biggest laggards of the sector were Pakistan Oilfields, Pakistan Petroleum and Attock Refinery (-2.83%).
“Slump in international urea prices kept the fertiliser sector under pressure throughout the day as major stocks of the sector remained in the red zone.”
Khan said Ferozsons Lab and Searl continued their upwards journey on news that the government had decided to buy in bulk Hepatitis C and various other vaccines from local manufacturers.
Trade volumes rose to 135 million shares compared with Wednesday’s tally of 101 million.
Shares of 337 companies were traded. At the end of the day, 86 stocks closed higher, 236 declined while 15 remained unchanged. The value of shares traded during the day was Rs9.1 billion.
Southern Electric was the volume leader with 9.2 million shares losing Rs0.55 to finish at Rs2.51. It was followed by TRG Pakistan with 6.7 million shares losing Rs0.86 to close at Rs33.79 and Pak Elektron Limited with 6.2 million shares losing Rs0.26 to close at Rs67.86.
Foreign institutional investors were net sellers of Rs684 million worth of shares during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, January 8th, 2016.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
COMMENTS
Comments are moderated and generally will be posted if they are on-topic and not abusive.
For more information, please see our Comments FAQ