Market Watch: Stock market declines in lively session

Benchmark index drops 46 points after gaining 520 points in previous two sessions.

KARACHI:

The stock market witnessed a volatile but healthy session on Tuesday as investors were active buyers and sellers throughout the day.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.38 per cent or 46.28 points to end at the 11,991.38 point level.

“After rallying by 520 points in the last two days, market took some correction as investors preferred to book profits,” said Topline Securities Equity Dealer Samar Iqbal.

Trade volumes fell to 200 million shares compared with Monday’s tally of 230 million shares. Volumes have more than doubled in the first two sessions of the week following government’s approval to ease tax regulations over the weekend. Analysts believe that new funds will come to the market after the government’s assurance that there will no longer be a need to disclose the source of income.

Engro Corporation was the top performer by hitting its upper limit of 5% over rumours that the conglomerate’s new plant may get gas supply restored sooner than expected.

Fauji Fertilizer Company witnessed massive battering by falling 2.5% over talks that it will be under pressure to reduce urea prices once Engro’s gas supply resumes.

Foreign institutional investors were net sellers of Rs80.77 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Oil stocks remained out of favour with Pakistan Oilfields leading the decline by descending 1.6% over reports of local institutional profit taking. Oil and Gas Development Company and Pakistan Petroleum also witnessed similar fate by falling 1.1% and 0.2%, respectively

Shares of 371 companies were traded on Tuesday. At the end of the day 126 stocks closed higher, 131 declined while 114 remained unchanged. The value of shares traded during the day was Rs6.9 billion.

Jahangir Siddiqui and Company was the volume leader with 30.34 million shares gaining Rs0.12 to finish at Rs6.61. It was followed by Bank Alfalah with 17.10 million shares declining Re0.01 to close at Rs12.15 and Lotte Pakistan PTA with 9.92 million shares losing Rs0.65 to close at Rs10.03.

Published in The Express Tribune, January 25^th, 2012.