Market watch: Bourse falls as investors offload stocks

KSE’s benchmark 100-share index drops 83 points.

KARACHI: Selling was the focal point of trade at the Karachi Stock Exchange (KSE) on Friday as investors offloaded stocks ahead of the weekend break.

The KSE benchmark 100-share index fell 0.71 per cent or 83.37 points to end at 11,606.86 point level.

US threatening direct action against terrorist network in Pakistan along with severe meltdown in global equity markets led to the fall, said Aziz Fidahusein and Company research head Hasnain Asghar Ali.

Trade volumes fell slightly to 79 million shares compared with Thursday’s tally of 83 million shares.

Benchmark index kept floating in the negative territory throughout the session due to unprecedented selling from off-shore channels, added Ali.

Foreign institutional investors (FII) were net sellers of Rs168 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

FII were seen as sellers in banking stocks while locals were sellers in energy stocks, according to JS Global Capital.

Financials continued their decline led by index heavyweight MCB Bank falling by 3.65% to close at Rs173.84.

Energy stocks continued their downward trend after benchmark WTI was seen trading below $79 per barrel due to growing European debt concerns.

Fertilisers companies led the volumes chart as locals look forward to govt’s decision on wheat support price. Any increase in base prices will significantly increase farmer’s liquidity, which is a positive for fertilisers.

Fatima Fertiliser Company was the volume leader with 10.67 million shares gaining Rs0.59 to finish at Rs17.77. It was followed by Fauji Fertiliser Bin Qasim Limited with 10.26 million shares gaining Rs0.68 to close at Rs56.11 and Jahangir Siddiqui and Company with 9.79 million shares declining Rs0.36 to close at Rs5.88.

Published in The Express Tribune, September 24^th,  2011.