Selling pressure in world markets causes stocks to drop

KARACHI: Stocks ended lower on Tuesday because of selling by foreign investors following pressure in world markets.

The Karachi Stock Exchange’s benchmark 100- share index fell 0.77 per cent, or 79.33 points, to end at 10,208.21. “The market opened in the positive zone on Tuesday, but due to lack of participation it was unable to reach a higher level,” said Sameer Danawala, an analyst at JS Global Capital. The euro and global stocks fell on Tuesday as a relief rally sparked by a $1 trillion plan to contain Greece’s debt crisis gave way to doubts as to how the country will cut its budget deficit.

“A lack of interest from locals and foreigners kept the market dull for most of the day especially towards the end, despite expectations of a rebound in the local market after witnessing the same in the international markets on Monday,” he said. Tuesday’s trade volume rose 54.2 per cent to 111 million shares from Monday’s tally of 72 million shares. Second-tier stocks were the volume leaders during the day while some activity in the oil, cement, fertiliser and banking sectors was also witnessed.

Total exchange value stood at a disappointing Rs2.44 billion. All top 10 stocks based on trade volume closed in the red on Tuesday. During the day’s trade, 156 stocks closed higher, 248 stocks declined and 18 stocks remained unchanged in value. Lotte Pakistan (KSE: LOTPTA) was the volume leader with 19.71 million shares losing Rs0.75 to close at Rs10.57. NIB Bank (KSE: NIB) came second with 9.05 million shares losing Rs0.23 to close at Rs3.8.

Lafarge Pakistan Cement (KSE: LPCL) finished third with 7.21 million shares losing Rs0.2 to close at Rs3.2. Pakistan Telephone Cables (KSE: PCAL) was Tuesday’s KSE-100 top gainer of the day, its share price rising 6.7 per cent to finish at Rs3.2. TRG Pakistan (KSE: TRG) was in the losers list for a second straight day, dropping 8.77 per cent to Rs4.37. Lotte Pakistan closed in the red, its share price shedding 6.63 per cent. The KSE-100 index hit a 12-month high of 10,677.5 points on April 15, 2010, and has been up 0.16 per cent this year.

Published in the Express Tribune, May 12th, 2010.