Market watch: Stock market follows global market trend

KSE’s benchmark 100-share index drops 54 points.

KARACHI: The Karachi bourse remained under pressure amid thin business on Monday as global markets fell because of worsening European debt crisis.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.46 per cent or 53.72 points to end at 11,708.25 points.

World stocks kicked off the last quarter of 2011 on a bearish note as MSCI world equity index – comprising top companies of the world – dropped 1.4 per cent to hover above the 14-month low set in September.

The Consumer Price Index (CPI) depicting a fall in inflation rate to 10.46% in September failed to provide any positive impetus to the market, said JS Global Capital analyst Ahmed Rauf.

Engro Corporation shares plummeted 4% after rumours of another cut in gas supply to its new urea plant.

Foreign institutional investors were net sellers of Rs49 million worth of shares, according to data compiled by the National Clearing Company of Pakistan Limited.

Trade volumes fell to a paltry 56 million shares compared with Friday’s tally of 97 million shares.

Talk that Pakistan State Oil will benefit from higher margins after increase in petrol and diesel prices failed to excite investors as the stock dropped Rs3.42 to close at Rs251.16.

Fertiliser stocks remained in the limelight as investors believe that a reduction in interest rate in the upcoming monetary policy will make the sector more attractive from dividend yield point of view, said Samar Iqbal, equity dealer at Topline Securities.

Fatima Fertiliser Company was the volume leader with 6.98 million shares, gaining Rs0.13 to finish at Rs18.98. It was followed by Fauji Fertiliser Bin Qasim with four million shares, firming Rs0.17 to close at Rs58.85 and Arif Habib Corporation with 3.81 million shares, increasing Rs1.12 to close at Rs30.37.

Published in The Express Tribune, October 4^th, 2011.