Market watch: Bourse falls on selling at higher levels

Karachi bourse eased on Tuesday as investors continued to book profits led by oil stocks.

KARACHI: Contrary to the performance of regional stock markets, the Karachi bourse eased as investors continued to book profits led by oil stocks, according to analysts.

The Karachi Stock Exchange benchmark 100-share index ended 0.16 per cent or 18.59 points lower at 11,825.06 after closing on Monday at its highest close since July 2008.

Major oil stocks witnessed mild pruning with Pakistan Oilfields and Pakistan State Oil edging lower by 0.3 per cent each. Pakistan Petroleum Limited was the exception which gained 0.9 per cent.

Following the preceding day’s trend, the trading session started on a positive note and the KSE-100 rose 52 points in early trade, said Crobsy Securities analyst Muhammad Ovais. However, profit-taking at higher levels in blue-chip stocks saw the index fall in the second half.

Volume rose to 116.8 million shares from 113.28 million shares traded on Monday. Banking stocks remained a key attraction as a result of local institutional buying, according to analysts.

Bank Alfalah was the volume leader with 12.48 million shares gaining 2.8 per cent to finish at Rs10.94. It was followed by National Bank of Pakistan with 9.23 million shares firming Rs0.85 to close at Rs72.05.

Sky-high cotton prices

Renewed buying interest was seen in textile stocks on the back of higher cotton prices in the local market and record high prices in the international market.

International cotton prices have soared to a record $1.75 per pound from $1.55 in the last two weeks.

Nishat Mills Limited remained a highly sought-after stock with seven million shares changing hands and the scrip jumped 2.2 per cent.

This hike also positively impacted Lotte Pakistan PTA which closed up one per cent on expectations of better margins. The scrip was the third most traded share with 8.76 million shares firming Rs0.15 to close at Rs13.38.

Shares of 407 companies were traded on Tuesday. At the end of the day, 154 stocks closed higher, 230 declined and 23 remained unchanged. The value of shares traded during the day was Rs5.06 billion.

Fauji Fertiliser Bin Qasim bucked the market trend and closed up 4.32 per cent as investors bet on higher quarterly earnings.

Published in The Express Tribune, December 22^nd, 2010.