Market watch: Stocks close lower as investors book profits

Nationwide protests put a damper on bullish sentiment.

KARACHI: Countrywide protests against sectarian killings took their toll on the stock market’s elongated bout of optimism, with the bourse closing a rare session trading in the red. Investors turned bullish as the stock market neared the 18,000 points psychological barrier, with profit-taking in key sectors pushing the index below its opening for the day.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index lost 0.27% or 47.90 points to end at the 17,817.71 points level. Trade volumes dropped to 266 million shares, compared with Monday’s tally of 292 million shares. The value of shares traded during the day was Rs7.90 billion.

“Profit-taking was led by Pakistan Telecommunication Company, which closed 4% down amid unconfirmed news that telecom companies may face contempt of court charges after increasing international call rates. Other telecom stocks also fell due to this,” reported Topline Securities’ equity dealer Samar Iqbal.

“The majority of the profit-taking was witnessed in oil and banking stocks, with Pakistan Oilfields, the Oil and Gas Development Company, United Bank and National Bank of Pakistan closing down by 1.5%, 0.3%, 1.5% and 0.9% respectively,” added JS Global analyst Mujtaba Barakzai.

“Engro Corp gained 4.31% as the stock remains in the limelight on expectations of a resolution to gas supply issues [faced by its fertilisers business]; however, rumours suggest serious obstacles,” said Elixir Securities’ Nazim Abdul Muttalib. “Moreover, Sui Northern Gas Pipelines closed on a second consecutive lower price limit, as the company announced booking down retained earnings by a whopping Rs8.3 billion after losing its petition.”

Shares of 364 companies were traded on Tuesday. At the end of the day, 106 stocks closed higher, 212 declined, while 46 remained unchanged. Pakistan Telecommunication Company was the volume leader with 33.01 million shares, losing Rs0.88 to finish at Rs21.89. It was followed by Fauji Cement with 29.30 million shares, losing Rs0.21 to close at Rs7.84; and Jahangir Siddiqui & Company with 21.44 million shares gaining Rs0.30 to close at Rs18.31.

Foreign institutional investors were buyers of Rs601.32 million and sellers of Rs305.04 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, February 20^th, 2013.

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