Market watch: Selling pressure pulls bourse down

KSE’s benchmark 100-share index falls 130 points.

KARACHI: Selling spree was witnessed at the bourse on Wednesday as negative triggers haunted the stock market.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index dropped 1.13 per cent or 130.07 points to end at 11,387.22 point level.

Media reports about closure of gas to key industries ahead of the winter season dragged down investor interest, said Elixir Securities equity dealer Nazim Abdul Muttalib.

In-ability of European Union to reach consensus on European debt crisis was the main reason for the selling, said JS Global Capital analyst Murtaza Jafar.

Foreign institutional investors (FII) were net sellers of Rs175 million worth of shares during the trading session, according to data maintained by the National Clearing Company of Pakistan Limited.

FII’s were rumoured sellers in fertiliser stocks while locals were sellers in cement and energy stocks, according to Jafar.

Trade volumes gained to 80.9 million shares compared with Tuesday’s tally of 69 million shares.

Nishat Mills and Engro continued their downward slide to end the day on respective lower limits as reports of FII sells continue to push investors aside, according to equity dealers. Fertiliser stocks that have been highly sought in the recent past fell as soon as Fauji Fertilizer Bin Qasim announced its results, although it beat market consensus.

Fatima Fertilizer Company was the volume leader with 17.3 million shares declining Rs0.4 to finish at Rs24.25. It was followed by Fauji Fertilizer Bin Qasim with 11.7 million shares losing Rs3.02 to close at Rs59.26 and Lotte Pakistan PTA with 6.4 million shares falling Rs0.35 to close at Rs11.61.

Published in The Express Tribune, October 27^th, 2011.