Stocks end down as investors sell
The Karachi Stock Exchange’s (KSE) benchmark 100-share index ended 0.71 per cent or 71.08 points lower at 9,992.50.
Concerns over rising political uncertainty, deteriorating law and order situation in the city and an inconclusive meeting between Securities and Exchange Commission of Pakistan (SECP) and Karachi Stock Exchange (KSE) board also triggered the selling, said Ahsan Mehanti, director at Arif Habib Investments Limited.
SECP Chairman Salman Shaikh and member-directors of the KSE met on Monday but no specific decision on the margin trading system was taken.
The State Bank of Pakistan is scheduled to announce the monetary policy on September 29 for the subsequent two months. The central bank raised its key policy rate by 50 basis points to 13 per cent in July and analysts expect another similar hike this time around as well.
Volumes however remained on the higher side at 88.5 million shares compared with Monday’s 65 million shares.
Among exploration and production companies, Pakistan Oilfields’ scrip witnessed some pruning despite expectations of a good payout in its results on September 30, analysts said.
Shares of 385 companies were traded on Tuesday. At the end of the day, 121 stocks closed higher, 242 declined and 22 remained unchanged. The value of shares traded during the day was Rs2.6 billion.
Lotte Pakistan PTA was the volume leader with 9.89 million shares falling Rs1.5 to finish at Rs8.65. It was followed by Sui Northern Gas with 9.68 million shares gaining Rs0.24 to close at Rs29.78 and WorldCall Telecom with 7.95 million shares losing Rs0.04 to close at Rs2.41.
Published in The Express Tribune, September 22nd, 2010.
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