Market Watch: Stock market takes a tumble

Benchmark KSE-100 index loses 99 points.

KARACHI:

Profit-taking was witnessed in the stock market on Tuesday as the benchmark index closed in the red.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.74% or 98.89 points to end at the 13,283.65 point level.

According to JS Global Analyst Jawad Khan, investors chose to book profits near 13,500 levels. Oil stocks remained in the negative territory through the day led by Pakistan Oilfields that lost 1.3% of share value followed by the Oil and Gas Development Company, whose stock shed 1.2%, albeit with low volumes.

Decline in fertilisers was led by Engro, which slipped 2.8% over rumours of planned government intervention to lower urea prices in rural markets. Fauji Fertilizer followed suit, losing 2.3% of its stock value.

Trade volumes fell to 313.59 million shares, with majority trading seen in second tier stocks, compared with Monday’s tally of 576.8 million shares.

The net value of shares traded during the day was Rs5.26 billion.

TRG Pakistan Limited was the volume leader with 31.30 million shares, gaining Rs0.40 to finish at Rs4.36. It was followed by Jahangir Siddiqui Company Limited (JSCL), with 25.61 million shares gaining Re1.00 to close at Rs15.66; and NIB Bank Limited with 24.21 million shares, losing Rs0.12 to close at Rs2.91. Foreign institutional investors were net buyers of Rs84.91 million, according to data maintained by the National Clearing Company of Pakistan Limited.

The negative tide witnessed in Foreign Portfolio Inflows (FPIs) in the last six months appears to have stemmed in recent days, with February 2012 marking the first month of inflows since May 2011; while the first 8 sessions in March have all been positive with regard to FPIs, according to KASB Securities.

Published in The Express Tribune, March 14^th, 2012.