Market watch: Bourse recovers early losses

KSE’s benchmark 100-share index closes down 50 points.


Our Correspondent June 06, 2012

KARACHI: The stock market started Tuesday on a low note by dropping 150 odd points by midday, but sentiments rose in the second half as the bourse recovered 100 points.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.36 per cent or 49.69 points to end at the 13,708.23 point level.

Major oil stocks witnessed a sell-off and fell sharply owing to weak international crude prices, said JS Global Capital analyst Jawad Khan. Oil & Gas Development Company declined 0.4% to Rs155.37 and Pakistan Petroleum declined 1.6% to Rs187.50.

Trade volumes fell 29% to 67 million shares compared with Monday’s tally of 96 million shares.

Investor sentiments were negative on fears of more foreign selling due to fall in regional markets, according to analysts. Foreign institutional investors were net sellers of Rs501 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Fertiliser manufacturers closed positive over news that gas supply will be resumed to Engro Corporation’s new plant from June 6 and rumours of price increase of Rs50 per bag by urea manufacturers, added Khan.

Cement manufacturers closed in the red despite the budget giving them a relief of Rs100 per ton in taxes. Lucky Cement gained 1.4% while DG Khan Cement gained 1.3%.

The value of shares traded during the day was Rs2.48 billion.

DG Khan Cement was the volume leader with 5.19 million shares declining Rs0.56 to finish at Rs41.31. It was followed by Fatima Fertilizer Company with 4.56 million shares falling Rs0.38 to close at Rs24.55 and Jahangir Siddiqui and Company with 3.73 million shares dropping Rs0.27 to close at Rs14.64.

Published in The Express Tribune, June 6th, 2012.

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