KARACHI: After a steep slide in the early hours, the stock market recovered as value buying covered the losses. The KSE-100 benchmark index lost 46 points or 0.41% to end the day at 11,264.95 points.
The bourse was down mainly because index heavyweights Oil and Gas Development Company and Nestle bore the brunt of the selling pressure and closed down 3.7% and 0.8%, respectively, said JS Global analyst Jawad Khan. Among the oil stocks, Pakistan State Oil jumped 4.6% as international oil prices rebounded dismissing investor fears of heavy inventory losses, while Pakistan Oilfields Limited also gained 1.2% after witnessing massive price erosion in previous sessions, Khan added.
Among fertiliser stocks, Fauji Fertilizer Bin Qasim remained the pick of the volumes, closing up 1.3%, while Engro Corporation hit its upper circuit breaker in a reversal of fortunes after remaining out of favour with investors over gas curtailment issues.
Foreign institutional investors broke the selling spree and were net buyers of Rs80.3 million worth of shares during the trade session, according to data compiled by National Clearing Company of Pakistan Limited. Ever since US debt limit issue erupted, foreigners on net basis have sold stocks worth $39mn in the last three weeks, according to Topline Securities.
Shares of 112 companies rose while 107 companies declined and 78 remained unchanged.
Trading activity remained low as trade volumes dropped to dismal level of 58.5 million shares compared with Wednesday’s 67.6 million shares. The total value of trade on Thursday was worth Rs3.2 billion.
Fauji Fertilizer Bin Qasim was the volume leader with 4.61 million shares gaining Rs0.61 to finish at Rs46.91. It was followed by Soneri Bank with 4.48 million shares without any change to close at Rs4 and Lotte Pakistan PTA with 4.17 million shares increasing by Rs0.04 to close at Rs10.77.
Published in The Express Tribune, August 12th, 2011.