Market watch: Stocks fall as investors sell

KARACHI: The stock market fell on Monday due to selling in key oil and banking stocks ahead of a long weekend.

The Karachi Stock Exchange benchmark 100-share index ended 0.2 per cent or 23.46 points lower at 11,596.69.

Investors preferred to trim their positions ahead of the long weekend starting Thursday, said Topline Securities equity dealer Samar Iqbal. The stock market will remain closed on Thursday and Friday because of Ashura.

Besides, the recent ratings revision of banks by Moody’s pushed investors to book profit in major banks, added Iqbal.

Moody’s Investors Service downgraded the global local currency deposit ratings and standalone bank financial strength ratings of the country’s largest banks on Friday by one notch each. National Bank of Pakistan ended 0.55 per cent lower at Rs70.6 while MCB Bank fell 0.91 per cent at Rs216.31.

However, United Bank was an exception following news over the weekend that Mansha Group was interested in acquiring 24.75 per cent shares in the bank. United Bank scrip rose Rs2.26 to close at Rs66.3.

Profit-taking was witnessed in the oil sector after British Petroleum rejected a joint bid of Oil and Gas Development Company (OGDCL) and Pakistan Petroleum Limited for its Pakistan’s assets on Saturday, said Iqbal. Pakistan Oilfields led the exploration and production sector’s decline, closing down 1.2 per cent followed by OGDCL which ended down 0.5 per cent.

Total number of shares traded fell 22 per cent to 181.16 million shares against Friday’s 233 million shares.

Nimir Industrial Chemical was the volume leader with 19.84 million shares gaining Rs0.72 to finish at Rs2.57. It was followed by Lotte Pakistan PTA with 10.81 million shares gaining Rs0.28 to close at Rs13.61 and Lafarge Pakistan with 10.81 million shares firming Rs0.35 to close at Rs3.74.

Shares of 406 companies were traded on the first trading day of the week. At the end of the day, 203 stocks closed higher, 185 declined and 18 remained unchanged. The value of shares traded was Rs3.48 billion.

Published in The Express Tribune, December 14^th, 2010.