Market Watch: Bourse drops to 11-week low on panic selling

KSE’s benchmark 100-share index plummets 199 points.


Express December 13, 2011

KARACHI: Bourse witnessed across the board selling on Tuesday after news that the US agreed to freeze aid worth $700 million to Pakistan.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index plummeted 1.73 per cent or 199.1 points to close at 11-week low of 11,278.02 point level.

Foreign institutional investors were net sellers of Rs226 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Foreigners have sold $5.3 million worth of stocks so far in December while local investors anticipate the selling to continue due to weakening rupee value against the dollar and tense relations with the US, said JS Global Capital analyst Jawad Khan. The benchmark index also lost ground on rumours of state-owned funds selling, added Khan.

Trade volumes fell to paltry level of 41 million shares compared with Monday’s tally of 46 million shares.

Fatima Fertilizer, market leader with 5.75 million shares traded, closed at its lower limit of the day as investors speculate a ban on one of its products on fears that it could be used to produce explosive materials, according to an Elixir Securities research note. The company scrip declined Rs1.17 to finish at Rs22.4.

It was followed by Engro Corporation with 4.45 million shares falling Rs2.75 to close at Rs105.09 and Jahangir Siddiqui and Company with 4.26 million shares losing Rs0.21 to close at Rs4.98. Among oil stocks, heavyweight Oil and Gas Development Company bore the brunt of selling closing down 2.9% at Rs152.93.

Shares of 312 companies were traded on Tuesday. At the end of the day 62 stocks closed higher, 175 declined while 75 remained unchanged. The value of shares traded during the day was Rs1.94 billion.

Published in The Express Tribune, December 14th, 2011.

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