The stock market fell on Wednesday after remaining closed for four days as negative political news from domestic and international fronts kept investors at bay.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.78 per cent or 88.32 points to end at 11,283.89 points.
News of President Asif Ali Zardari flying to Dubai for a checkup and reports of the government being under immense pressure because of the memogate scandal and Nato attacks kept investors away from the market, said analysts.
Engro Corporation and Attock Refinery led the negative momentum after both stocks hit their lower limits at midday trade, although they recovered on late buying.
Fauji Fertilizer Company and Fauji Fertilizer Bin Qasim faced similar movements as international urea prices continued to slide down, raising concerns over their profitability for the coming year, said Elixir Securities equity dealer Sibtain Mustafa.
The entire fertiliser sector remained under pressure over surcharge and gas curtailment issues. Foreign institutional investors were net sellers of Rs160 million worth of shares, according to data compiled by the National Clearing Company of Pakistan Limited.
Trade volumes crawled up to a paltry 38 million shares compared with Friday’s tally of 36 million shares. Shares of 312 companies were traded on Wednesday. At the end of the day, 62 stocks closed higher, 143 declined and 107 remained unchanged. The value of shares traded during the day was Rs1.62 billion.
Jahangir Siddiqui and Company was the volume leader with 3.73 million shares, declining Rs0.19 to finish at Rs5.25. It was followed by Fauji Fertiliser Bin Qasim with 3.25 million shares, falling Rs2.42 to close at Rs50.53 and Lotte Pakistan PTA with 3.2 million shares, losing Rs0.59 to close at Rs8.79.
Published in The Express Tribune, December 8th, 2011.