Business

Market watch: Index takes a hit as oil stocks lose favour

Heavy trading amid profit-taking marks bearish session at bourse.

Our Correspondent June 05, 2013

Shares of 396 companies were traded on Wednesday. At the end of the day, 142 stocks closed higher, 219 declined while 35 remained unchanged. PHOTO: AFP/FILE

KARACHI: The stock market took a u-turn from its protracted bull run even as Pakistan’s next prime minister was sworn in amid strong popular support. The index closed in the red over heavy selling in oil stocks as Muhammad Nawaz Sharif took oath as Prime Minister elect.

The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 0.82% or 182.09 points to end at the 22,092.42 points level. Trade volumes shot to 665 million shares compared with Tuesday’s tally of 544 million shares. The value of shares traded during the day was Rs15.88 billion.

“Profit-taking in oil stocks forced the index to fall around 200 points, as heavyweight Oil and Gas Development Company (OGDC) alone lost Rs10,” reported Samar Iqbal from Topline Securities. “However, foreigners’ favourite MCB Bank prevented the index from falling further by adding 75 points,” she added.

“With healthy volumes, mid-cap stocks remained in the limelight.”

Shares of 396 companies were traded on Wednesday. At the end of the day, 142 stocks closed higher, 219 declined while 35 remained unchanged.

“Oil [stocks] started the downward trend,” concurred JS Global Capital analyst Khalil Usmani, “where OGDC, Pakistan Petroleum, Pakistan State Oil and Pakistan Oilfields closed down 3.4%, 1.8%, 2.2% and 1.1% respectively. Star performers for the day were MCB Bank and Lucky Cement, which closed up 3.6% and 2.3%, respectively.”

Bank of Punjab (rights issue) was the volume leader with 97.80 million shares, gaining Rs0.69 to finish at Rs5.73. It was followed by Pace Pakistan with 48.77 million shares, gaining Rs0.72 to close at Rs5.34; and Jahangir Siddiqui and Company with 40.45 million shares, gaining Rs0.70 to close at Rs14.61.

“Moreover, rumours of an increment in the cess surcharge on gas consumers put fertilisers under the firing line, pushing down Engro Corp (down 3.1%) and Fauji Fertilizer Bin Qasim (down 1.78%),” added Harris Ahmed Batla, analyst at Elixir Securities.

Foreign institutional investors were buyers of Rs1.73 billion and sellers of Rs818.68 million, according to data maintained by the National Clearing Company of Pakistan Limited.

Published in The Express Tribune, June 6^th, 2013.

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