Stocks fall as investor interest turns sour
The Karachi Stock Exchange (KSE) benchmark 100-share index ended 0.34 per cent or 36.7 points lower at 10,905.24.
The government approved a flood surcharge of 10 per cent to raise more than Rs65 billion ($761 million) and also approved a draft of the Reformed General Sales Tax (RGST) bill.
“Imposition of flood surcharge and a 15.33 per cent increase in the Consumer Price Index – the key indicator of inflation – for October proved to be the sentiment dampener for investors,” said JS Global Capital analyst Ahmed Rauf.
The domestic market saw a little correction in line with Asian markets, said Topline Securities equity dealer Samar Iqbal.
In spite of continued offshore buying, local investors adopted a cautious stance and remained on the sidelines, said Crosby Securities analyst Ovais Iqbal.
Volumes dropped by 43 per cent to 125 million shares against previous day’s 221 million shares. Trade was dominated by second tier stocks.
Selling pressure was noticed in oil, banking and other blue-chip stocks. Oil and Gas Development Company, Pakistan Petroleum, Pakistan State Oil, Shell, MCB Bank, National Bank, Habib Bank and Engro Corporation all closed in the negative zone, added Iqbal. Shares of 397 companies were traded on Thursday. At the end of the day, 175 stocks closed higher, 194 declined and 28 remained unchanged. The value of shares traded during the day was Rs4.2 billion.
TRG Pakistan was the volume leader with 17.04 million shares gaining Rs0.04 to close at Rs4.43. It was followed by Arif Habib Securities with 13.09 million shares firming 4.91 per cent to close at Rs25.62 and Jahangir Siddiqui and Company with 11.09 million shares increasing Rs0.09 to close at Rs12.11.
Published in The Express Tribune, November 12th, 2010.
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