KSE falls 50 points, fails to cross 11,000 again

KARACHI: Once more the benchmark KSE-100 index at the local bourse failed to sustain the 11,000 level as an expected increase in inflation and possible hike in policy rate dampened investor sentiment throughout the day, according to analysts.

“Some profit-taking was witnessed in blue-chip stocks amid expectation of higher inflation number to be released soon,” commented Samar Iqbal, a local equity dealer.

The KSE-100 index fell 50.34 points, or 0.46 per cent, to close at 10,941.94 points. Volumes remained high with a turnover of a little more than 221 million shares recorded during the day.

Shares of 399 companies were traded. At the end of the day, 162 stocks closed higher, 220 declined and 17 remained unchanged. The value of shares traded during the day was Rs8.03 billion.

Major profit-selling was witnessed in the scrips of the Oil and Gas Development Company (OGDC), Pakistan Petroleum Limited (PPL), Pakistan State Oil (PSO), Shell, MCB Bank, National Bank (NBP) and United Bank (UBL), highlighted Ovais Iqbal from Crosby Securities.

“Overall, volumes stood on the higher side with leaders emerging from second tier stocks, namely JS and Company Limited (JSCL) and Lotte Pakistan PTA (LOTPTA),” highlighted Sibtain Mustafa from Elixir Securities.

JSCL led the market with a turnover of more than 35 million shares. The scrip gained Rs0.23 to close at Rs12.02 per share. Lotte followed with a trade volume of 31.59 million shares. The company’s stock gained 1.63 per cent to close at Rs11.84. “LOTPTA remained in the limelight on the back of mounting PTA prices and margins in the international market,” added Iqbal.

DG Khan Cement came in third with almost 20 million shares traded. The scrip lost Rs1.35 to close at Rs29.13 per share. “Interesting trends were witnessed in cement sector where only Lucky Cement remained in positive territory while others followed market trend,” concluded Iqbal.

Published in The Express Tribune, November 11^th, 2010.