Market watch: Stocks, volumes fall in volatile session

KSE-100 ends down 81 points.

KARACHI: Stocks closed down on Wednesday in a volatile session with the index swaying between red and green at regular intervals, according to analysts.

The Karachi Stock Exchange benchmark 100-share index ended 0.64 per cent or 80.55 points lower at 12,577.61.

Local institutions opted to book profits ahead of the key monetary policy announcement on January 29, said JS Global Capital analyst Jawad Khan. Analysts expect the State Bank of Pakistan to announce another increase of 50 basis points in the key discount rate.

Fauji Fertiliser Company (FFC) and Fauji Fertiliser Bin Qasim Limited (FFBL), which remained in the limelight during last week, took a massive hammering at the hands of local institutions. FFC slipped 2.5 per cent to close at Rs150.11 while FFBL lost 2.3 per cent to end at Rs42.14.

Index heavyweight Oil and Gas Development Company closed marginally lower, however, the stock remained exceptionally unpredictable adding to the session’s volatility, added Khan.

Volumes also remained low with mid-cap stocks dominating trade. Trade volume fell to 188 million shares compared with Tuesday’s tally of 270.8 million shares.

On the contrary, Pakistan Oilfields scrip rose by more than one per cent on news of increased production in Tal block where the company is the major beneficiary. Its share price increased Rs3.54 to close at Rs337.74.

The market is expected to remain sensitive to foreign flows, but further correction cannot be ruled out specifically as rumours spread that the leverage product may see yet another delay, said Elixir Securities equity dealer Sara Shahid.

Shares of 396 companies were traded on Wednesday. At the end of the day, 140 stocks closed higher, 234 declined and 22 remained unchanged. The value of shares traded during the day was Rs8.81 billion.

Lotte Pakistan PTA, the volume leader with 45.78 million shares, accounted for 24 per cent of the total traded volume. The scrip gained Rs0.55 to finish at Rs16.19.

It was followed by FFBL with 15.76 million shares and Pakistan Telecommunication Company Limited with 12.55 million shares gaining Rs0.02 to close at Rs20.03.

Published in The Express Tribune, January 20^th, 2011.