KARACHI: Stock market fell on Monday as tensions between Pakistan and the United States (US) appeared flaring, hurting previous positive sentiment in the market.
The Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 1.2% or 271.26 points to end at 22,377.83 points.
“The market opened the week on a negative note continuing to decline after a higher than expected inflation number on Friday sparked a selling spree. The killing of the Pakistani Taliban chief via a drone attack on Saturday made the bears prowl the market as participants were worried about the Pakistan Tehreek Insaf chief’s comment to block NATO supplies in protest, a move which could potentially hurt aid flow to Pakistan from the United States (US),” said Ovais Ahsan of JS Global.
“The oil and gas sector bore the brunt of the sell-off as Oil and Gas Development Company (-2.3%), Pakistan Petroleum Limited (-1.5%) and Pakistan Oilfields Limited (-2.3%) closed in the red in line with weakness in global oil prices which are being pruned by talk of the US Federal Reserve curtailing its current quantitative easing program earlier next year than expected,” Ahsan added.
Haris Ahmed Batla of Elixir Securities added that “CPI inflation higher than market estimates, announced on Friday, also dented sentiments as market anticipates interest rate hike in the upcoming monetary policy dragging down Kohat Cement (KOHC PA -4.7%), Oil and Gas Development (OGDC PA -2.3%) and DG Khan Cement (DGKC PA -3%). Similar reason provided support to financials as local investors took their bets on National Bank (NBP PA +0.7%) and Bank Alfalah (BAFL PA -1%).”
Trade volumes fell to 91 million shares compared with Friday’s tally of 125 million shares.
The value of shares traded during the day was Rs3.4 billion.
Bank Al Falah was the volume leader with 10.2 million shares losing Rs0.23 to finish at Rs23.01. It was followed by Jahangir Siddiqui and Company with 9.2 million shares gaining Rs0.21 to close at Rs8.06 and Pakistan Telecommunication Company Limited with 8.8 million shares losing Rs0.78 to close at Rs26.
Foreign institutional investors were net buyers of Rs473 million, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 5th, 2013.
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