Stock market falls on profit-taking
The Karachi Stock Exchange’s benchmark 100-share index ended 0.52 per cent or 60.84 points lower at 11,569.09.
Concerns over rising inflation also brought investor sentiments down, said Arif Habib Investments Limited Director Ahsan Mehanti. The Consumer Price Index (CPI) rose 15.48 per cent in November from a year ago, according to data released by the Federal Bureau of Statistics.
Profit-taking was also caused by reports that major political parties have joined hands in opposing the reformed general sales tax (RGST) bill, said JS Global Capital analyst Murtaza Jafar.
The bill is yet to be tabled in the National Assembly and such an opposition can prove to be a hindrance for the government in the upcoming meeting of the International Monetary Fund’s executive board for the approval of the loan tranche, added Jafar.
Jahangir Siddiqui and Company Limited led the decline after newspapers reported that its key official has been put on the exit control list on alleged land grabbing. Anxiety over the issue led locals to sell. Nishat Mills Limited also closed near its lower lock on profit-taking as did Pakistan Oilfields.
Trading volume remained flat at 195 million shares compared with 196 million shares traded a day earlier.
Moreover, the auto sector also remained under pressure on the back of news regarding increase in the age limit of imported used cars.
Shares of 411 companies were traded on Thursday. At the end of the day, 165 stocks closed higher, 231 declined and 15 remained unchanged. The value of shares traded during the day was Rs5.56 billion.
Dewan Salman was the volume leader with 35.85 million shares gaining Rs0.71 to finish at Rs3.72. It was followed by Jahangir Siddiqui and Company Limited with 12.26 million shares falling Re1 to end at Rs11.74 and WorldCall Telecom with 11.14 million shares gaining Rs0.23 to close at Rs2.9.
Published in The Express Tribune, December 10th, 2010.
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