Market Watch: Oil stocks drag down bourse

KSE’s benchmark 100-share index falls 104 points.


Our Correspondent May 08, 2012

KARACHI:


A slump in market-mover oil stocks dragged down the entire index on Tuesday as international oil prices continue their downward trend.


The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.71 per cent or 104.01 points to end at 14,513.96 point level.

Profit taking continued at the local bourse amid declining trend in the global crude oil prices, said Topline Securities Equity Dealer Samar Iqbal.

Index heavyweight Oil and Gas Development Company fell Rs1.70 to close at Rs166.71 while fellow sector peers Pakistan Petroleum and Pakistan Oilfields both declined 1.4%. Oil and gas exploration companies tend to fall on declining oil prices, which decreases the amount of money they will make for selling their energy products.

Trade volumes fell to 226 million shares compared with Monday’s tally of 254 million shares.

Rumours that Pakistan Telecommunication Company Limited (PTCL) made some progress in establishing International Clearing House made it the highest traded stock for the fourth straight day. The agreement between PTCL and Long Distance International operators aims to curb grey traffic in the telecom sector.

Pakistan Telecommunication Company was the volume leader with 31.29 million shares gaining Rs0.03 to finish at Rs16.05. It was followed by DG Khan Cement with 26.87 million shares declining Rs0.74 to close at Rs45.84 and Engro Corporation with 13.70 million shares traded and the stock pice increasing Rs5.40 to close at Rs113.27. Foreign institutional investors were buyers of Rs689 million and sellers of Rs479 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Shares of 386 companies were traded on Tuesday. At the end of the day 160 stocks closed higher, 160 declined while 66 remained unchanged. The value of shares traded during the day was Rs9.63 billion.

Published in The Express Tribune, May 9th, 2012.

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