Market Watch: Bourse falls as investors opt to book profits

KSE’s benchmark 100-share index drops 32 points.

KARACHI: After rising more than 500 points in the last few sessions, investors opted to book profits and cash in while stocks are at healthy levels.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.28 per cent or 32.13 points to end at the 11,515.59 point level.

Investors booked profits in blue chip stocks after a five-day bull run, said Arif Habib Corporation Director Ahsan Mehanti.

The market continued to overlook political developments as the prime minister appeared before the Supreme Court with the next hearing now scheduled for February 1.

Pakistan State Oil gained Rs0.81 to close at Rs238.91 after news that a banking consortium has agreed to invest up to Rs150 billion in treasury bills to ease off the energy sector circular debt.

Trade volumes rose to 92.5 million shares compared with Wednesday’s tally of 84 million shares.

Index heavyweights Oil and Gas Development Company fell 2.1% and National Bank of Pakistan decreased 1.9% on reported foreign selling. Foreign institutional investors were net sellers of massive Rs576 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Institutional activity including state funds was noticeable with interest in select stocks as investors build positions ahead of earnings season.

Shares of 327 companies were traded on Thursday. At the end of the day 123 stocks closed higher, 113 declined while 91 remained unchanged. The value of shares traded during the day was Rs3.54 billion.

Jahangir Siddiqui and Company was the volume leader with 15.81 million shares jumping 16% to finish at Rs5.16. It was followed by Lafarge Pakistan with 7.89 million shares firming Rs0.09 to close at Rs2.01 and Azgard Nine with 5.99 million shares increasing Rs0.16 to close at Rs3.31.

Published in The Express Tribune, January 20^th, 2012.