Business

Market watch: Stocks end down in volatile session

Karachi Stock Exchange benchmark 100-share index ended 86 points lower on Tuesday.

Express February 01, 2011

KARACHI: Equities closed down in an exceptionally volatile session on Tuesday with reported local selling on news of rising fiscal deficit and uncertainty over refinery margins, according to dealers.

The Karachi Stock Exchange benchmark 100-share index ended 0.7 per cent or 85.98 points lower at 12,273.38.

Oil marketing companies and refineries were hit hard as Pakistan State Oil fell Rs9.02, Attock Refinery dropped Rs4.98 and National Refinery declined Rs4.26, according to Topline Securities equity dealer Samar Iqbal.

The country’s total debt reached Rs10 trillion on Tuesday, according to data released by the State Bank of Pakistan.

The bourse is expected to remain volatile with foreign activity key to the market direction in the near term, said Elixir Securities equity dealer Faisal Bilwani.

However, renewed interest was seen in Pakistan Petroleum Limited and Pakistan Oilfields from local institutions due to rising international crude oil prices hovering above $100 per barrel. Both stocks closed up one per cent despite the fact that the market was down.

Volumes increased to 132 million shares compared with 121 million shares traded on Monday.

Banking stocks underwent massive pruning ahead of their full-year result announcements while Engro gained 0.8 per cent on talk of a better-than-expected financial results.

Lucky Cement fell 3.2 per cent and DG Khan Cement was down 1.5 per cent on news of proposed increase in federal tax.

Shares of 394 companies were traded on Tuesday. At the end of the day, 108 stocks closed higher, 263 declined and 23 remained unchanged. The value of shares traded during the day was Rs6.68 billion.

Lotte Pakistan PTA was the volume leader with 18.44 million shares, losing Rs0.19 to finish at Rs15.15. It was followed by Pakistan Telecommunication Company Limited (PTCL) with 7.89 million shares, gaining Rs0.1 to close at Rs18.69 and Azgard Nine with 7.75 million shares, losing Rs0.32 to close at Rs10.96.

Published in The Express Tribune, February 2^nd, 2011.