Market watch: Bourse follows global peers downward

KSE’s benchmark 100-share index plummets 205 points.

KARACHI: The stock exchange followed its global peers downward and with it went below the 14,000 points psychological barrier on Friday.

Asian shares tumbled and were set for their worst weekly showing since September on Friday amid signs of growing instability among Spanish banks and political turmoil in Greece. Meanwhile, European shares also weakened and closed at their lowest level since November.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index plummeted 1.46 per cent or 205.30 points to end at the 13,857.78 point level.

Foreign institutional investors were net sellers of Rs105 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Major blue chips underwent massive selling with oil stocks taking the major battering albeit with low volumes amid declining international oil prices. Pakistan Petroleum dipped 2.1%, followed by Oil and Gas Development Company & Pakistan Oilfields declining 1.2% & 1.9%, respectively.

Local investor sentiments could not even be lifted on news of improvements in Pak-US relationship and expected reopening of NATO supply, said Samar Iqbal Equity Dealer Topline Securities.

DG Khan Cement closed at its lower limit while Lucky Cement closed down 3.4% as rumours are making round that price consensus among manufacturers will break which could potentially lead to price wars in near future, said JS Global Capital analyst Jawad Khan.

Among banks, United Bank closed at its daily lower limit while MCB Bank dipped 2.5% despite recent assurance by the finance minister that the government is not considering increasing taxes in the upcoming budget.

Trade volumes gained to 176 million shares compared with Thursday’s tally of 143 million shares.

Shares of 344 companies were traded on the last trading session of the week. At the end of the day 76 stocks closed higher, 202 declined while 66 remained unchanged. The value of shares traded during the day was Rs5.16 billion.

Lotte Pakistan PTA was the volume leader with 22.38 million shares declining Rs0.71 to finish at Rs8.52. It was followed by PTCL with 16.41 million shares descending Re0.1 to close at Rs15.49 and Jahangir Siddiqui and Company with 16.35 million shares increasing Rs0.63 to close at Rs16.57.

Published in The Express Tribune, May 19^th, 2012.