"Rumored institutional and foreign selling was witnessed across the exploration and production sector, in banks and oil marketing companies," says an analyst. PHOTO: INP
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 2.33% or 551.48 points to end at 23,088.49 points.
“KSE100 index started off on a lacklustre note and eventually lost 2.3% on institutional selling as expectation over higher inflation and consequently raising bars for hikes in interest rate pushed prices down,” said Muhammad Sibtain Mustafa of Elixir Securities.
“This was further reflected in Pakistan Investment Bond yields which traded at 12.5%. Heavy weight stocks OGDC and MCB alone contributed more than 190 points to the fall, dragging the index to recent new lows which was followed by selling in Oil and banking stocks,” Mustafa added.
“The market continued with its correction phase today dropping 551 points, closing the day at 23,088 level with volumes of 236 million shares,” said Adeel Jafri of JS Global.
“Rumored institutional and foreign selling was witnessed across the exploration and production sector, in banks and oil marketing companies. Telecard Limited was in the limelight as the International Clearing House agreement is likely to boost the company’s bottom line,” Jafri added.
The International Clearing House (ICH) is a one-stop portal for all international calls to and from Pakistan. If the courts find the ICH to be a monopoly, it might be asked to shut down, which will boost Telecard Limited’s business.
Trade volumes jumped to 236 million shares compared with Monday’s tally of 150 million shares. Shares of 362 companies were traded on Tuesday. At the end of the day 96 stocks closed higher, 222 declined while 44 remained unchanged. The value of shares traded during the day was Rs7.9 billion.
Telecard Limited was the volume leader with 27.7 million shares gaining Rs0.56 to finish at Rs6.86. It was followed by Bank of Punjab with 21 million shares losing Rs0.31 to close at Rs12.42 and National Bank with 14.9 million shares losing Rs2.06 to close at Rs54.
Foreign institutional investors were net sellers of Rs1 billion, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, September 25th, 2013.
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