Local investors stayed away from the market on the first trading session of the week due to falling international bourses and domestic political tensions.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index crawled up 0.23 point to end at 12,464.49 points.
Fallout of European markets has heightened risk of further foreign selling, said Elixir Securities equity dealer Nazim Abdul Muttalib.
Foreign institutional investors were net sellers of Rs505 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.
Among developments in local politics, Muttahida Qaumi Movement decided to part ways with the government and quit the alliance at both federal and provincial levels. Trade volumes were flat at 53 million shares compared with Friday’s tally of 52 million shares.
The fertiliser sector remained in the limelight on expectation of an increase in urea prices, added Muttalib. Fatima Fertiliser outperformed the index by rising to its upper limit and stood as the volume leader.
The positive news regarding conversion of Rs283 billion power company debt into Pakistan Investment Bonds failed to excite investors at all, said Muttalib.
Moreover, the oil and refinery sector remained under selling pressure owing to a sharp decline in international oil prices.
Fatima Fertiliser was the volume leader with 9.7 million shares, rising to its upper limit to finish at Rs15.89. It was followed by Arif Habib Corporation with 4.62 million shares, gaining Rs1.25 to close at Rs26.31 and Fauji Fertiliser with 4.16 million shares, firming Rs5.09 to close at Rs157.05.
Shares of 337 companies were traded on Monday. At the end of the day, 111 stocks closed higher, 129 declined and 97 remained unchanged. The value of shares traded during the day was Rs2.67 billion.
Published in The Express Tribune, June 28th, 2011.
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