Market watch : Karachi bourse follows global peers downward

KSE-100 index falls 74 points.

KARACHI:

The stock market fell on Thursday in line with global peers amid tumbling international commodity prices.

The Karachi Stock Exchange (KSE) benchmark 100-share index dropped 0.62 per cent or 74.18 points to end at 11,962.18 points.

Crude oil prices tumbled more than five per cent to below $100 per barrel while silver prices sagged seven per cent in a major sell-off on Thursday.

The plunge in regional markets shattered local investor confidence, said Topline Securities equity dealer Samar Iqbal. Court verdict on President Zardari holding two offices also augmented selling pressure, added Iqbal.

The recent rally of the energy sector came to a halt as concerns grew over inventory losses for refineries and oil marketing companies after international oil prices fell below $100 a barrel.

Falling oil prices took the steam off the oil sector as Oil and Gas Development Company ended down 1.3 per cent, followed by one per cent decline in Pakistan Petroleum Limited and 0.6 per cent fall in Pakistan Oilfields.

Trade volumes fell to a paltry level of 64 million shares compared with Wednesday’s tally of 84.4 million shares.

Bearish sentiment prevailed throughout the trading session as investors awaited the outcome of a meeting between Pakistan and IMF officials for review of the federal budget and release of the next loan tranche, said Arif Habib Investments Limited Director Ahsan Mehanti.

Fauji Fertiliser Company advanced 0.7 per cent on market talk of a hike in urea prices.

Shares of 365 companies were traded on Thursday. At the end of the day, 94 stocks closed higher, 154 declined and 117 remained unchanged. The value of shares traded during the day was Rs1.54 billion.

Jahangir Siddiqui and Company was the volume leader with 9.44 million shares, gaining Rs0.69 to finish at Rs6.87. It was followed by Azgard Nine with 8.72 million shares, firming Rs0.51 to close at Rs5.82 and Bank Alfalah with 6.72 million shares, gaining Rs0.09 to close at Rs10.77.

Published in The Express Tribune, May 13^th, 2011.