KSE 100-share index drops 317 points ahead of monetary policy announcement. PHOTO: REUTERS/FILE
Bloodletting continued at the Karachi bourse ahead of the State Bank’s monetary policy announcement for the next two months, with investors booking profits right from the get-go of trading in the week’s last session.
“A global selloff in equity markets affected the Pakistani market, as the benchmark index fell by more than 1%,” reported Samar Iqbal, senior manager equity sales at Topline Securities.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index plunged 1.44% or 316.69 points to end at 21,698.35 points. Trade volumes dropped to 277 million shares, compared with Thursday’s tally of 306 million shares. The value of shares traded during the day was Rs9.65 billion.Investors abandon positions amid uncertainty
“Index heavyweight Oil and Gas Development Company, MCB Bank and Pakistan State Oil came down sharply, while some interest was witnessed in cement stocks on the back of a decline in coal prices and a likely reduction in the (SBP) policy rate. News that gas subsidy on fertiliser will be withdrawn affected fertiliser stocks,” Iqbal said.
Shares of 344 companies were traded on Friday. At the end of the day, 63 stocks closed higher, 242 declined and 39 remained unchanged.
Fauji Cement was the volume leader with 35.58 million shares, gaining Rs0.4 to finish at Rs13.53. It was followed by TRG Pakistan with 35.26 million shares, losing Rs0.98 to close at Rs10.28 and Jahangir Siddiqui and Company with 12.25 million shares, losing Rs0.75 to close at Rs12.86.
“Despite a recovery in regional markets, locals remained cautious on morning reports of foreign selling in select names,” said Faisal Bilwani, analyst at Elixir Securities. “Only a handful of names traded against the broader market direction, with United Bank (up 1.5%) and Fauji Cement (up 3%) closing green. Engro Corp (down 4.9%) was under pressure and the stock hit its lower lock intraday on reported foreign selling and rumours of technical issues with the company’s EnVen urea plant.”
SOURCE: KSE
Foreign institutional investors were buyers of Rs1.2 billion and sellers of Rs1.15 billion worth of securities, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, June 22nd, 2013.
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