Market watch: Stock market falls in dismal session

KSE’s benchmark 100-share index sheds 67 points.

KARACHI: Low participation and depressed activity continued on Thursday amid political uncertainty.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index dropped 0.49 per cent or 66.58 points to end at the 13,600.60 point level.

In the latest twist, the Anti Narcotics Force (ANF) on Thursday issued a non-bailable warrant for the arrest of Pakistan Peoples Party’s candidate for the prime minister’s post, Makhdoom Shahabuddin for his involvement in the ephedrine case.

Furthermore, subdued sentiments in regional stocks markets and international commodity markets also dampened local investor confidence, said Topline Securities Senior Equity Dealer Mohammad Rizwan.

Trade volumes gained to 57 million shares compared with Wednesday’s five-month low of 47 million shares.

Oil stocks led the fall with Pakistan State Oil, Pakistan Petroleum and Pakistan Oilfields declining by 0.2%, 0.1% and 0.9%, respectively.

The fertiliser sector witnessed a dismal session following news that the government has diverted 300 million cubic feet of gas from Fauji Fertilizer Company to Karachi Electric Supply Company. Foreign institutional investors were net sellers of Rs164 million worth of shares, according to data maintained by the National Clearing Company of Pakistan Limited.

Shares of 348 companies were traded on Thursday. At the end of the day 93 stocks closed higher, 156 declined while 99 remained unchanged. The value of shares traded during the day was Rs2.2 billion.

Pakistan Telecommunication was the volume leader with 5.1 million shares declining Rs0.68 to finish at Rs14. The decline in stock value is primarily due to show-cause issued to the telecom giant by Competition Commission of Pakistan for abusing its dominant position in the market while providing broadband services.

It was followed by Hub Power Company with 4.0 million shares firming Rs0.13 to close at Rs41.93 and DG Khan Cement with 3.6 million shares declining Rs0.95 to close at Rs39.08.

Published in The Express Tribune, June 22^nd, 2012.