Market Watch: Downward trend continues in thin trade

Benchmark KSE-100 index drops 98 points.

KARACHI: The downward trend continued at the stock market on Monday on the back of unrest in the city.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index dropped 0.79 per cent or 98.22 points to end at 12,291.9 point level.

Local political development and news of US withholding $800 million military assistance to Pakistan put participants at a caution as future course remains unclear, said Elixir Securities equity dealer Nazim Abdul Muttalib.

Trade volumes crawled up to 32 million shares but hovered just above the ten month-low of 30 million shares recorded on Friday.

Moreover, news of Securities and Exchange Commission of Pakistan allowing 50 per cent initial margin as eligible securities and 50 per cent as cash in future contracts failed to excite investors, added Muttalib.

However, foreign institutional investors were net buyers of Rs235 million during trade, according to data maintained by the National Clearing Company of Pakistan Limited.

Oil and Gas Development Company also declined after early morning news flow of a decline in output of the Qadirpur field, analyst said. The company stock fell Rs1.65 to close at Rs152.07.

Engro continued to lose grounds after investors opted to sell on news reports of decline in gas output from the Qadirpur Field. The field supplies gas to Engro fertiliser plant.

Shares of 372 companies were traded on the first trading session of the week. At the end of the day 73 stocks closed higher, 145 declined while 154 remained unchanged. The value of shares traded during the day was Rs1.36 billion.

Pace (Pakistan) was the volume leader with 3.3 million shares declining Rs0.05 to finish at Rs2.18. It was followed by PTCL with 2.36 million shares losing Rs0.06 to close at Rs14.08 and Fauji Fertiliser Bin Qasim with 2.23 million shares gaining Rs0.21 to close at Rs44.11. Fauji Fertiliser increased on the expectations of a good dividend in the upcoming result, analysts said.

Published in The Express Tribune, July 12^th, 2011.