Market Watch: Bourse falls as investors opt to sell

KSE’s benchmark 100-share index dips 63 points.

KARACHI: The stock market fell on Tuesday as investors opted to book profits in key oil and banking stocks.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.53 per cent or 63.36 points to end at 11,912.19 points.

The oil sector’s decline was led by Pakistan Oilfields which dropped 1% to close at Rs362.81 ahead of its result announcement scheduled today (Wednesday), said JS Global Capital analyst Jawad Khan.

Oil and Gas Development Company also dipped 0.3% despite an announcement that the first phase of Kunnar-Pasakhi Deep project had been completed which would increase gas production by 100 million cubic feet per day (mmcfd), added Khan.

Trade volumes rose to 81.1 million shares compared with Monday’s tally of 79.5 million shares. Banking stocks continued to remain out of favour amongst investors with almost all major banks witnessing declines.

Foreign institutional investors were buyers of Rs133 million and sellers of Rs106 million worth of shares during the trading session, according to data compiled by the National Clearing Company of Pakistan Limited.

Engro closed near its lower limit as its new Enven plant is on Sui Northern Gas Pipelines’ network, which is experiencing new gas issues. On the other hand, Fatima Fertiliser surged 4% as it is on the other gas network with support from talk of another urea price hike. Fauji Fertiliser Company gained 2.3% on expectation of healthy earnings to be announced in coming days.

Attock Refinery jumped 4% to Rs124.2 following announcement of higher than expected earnings for the quarter.

Shares of 377 companies were traded during the session. At the end of the day, 101 stocks closed higher, 168 declined and 108 remained unchanged.

Fatima Fertiliser Company was the volume leader with 13.5 million shares, gaining Rs0.49 to finish at Rs24.38. It was followed by Fauji Fertiliser Bin Qasim with 7.9 million shares, firming Rs0.2 to close at Rs63.67 and Lotte Pakistan PTA with 7.85 million shares, increasing Rs0.22 to close at Rs12.57.

Published in The Express Tribune, October 19^th, 2011.