Benchmark KSE-100 index falls 378.35 points. PHOTO: AFP/FILE
Stocks opened lower in early trade as weak performance of regional markets and lack of interest on the local front kept participation at minimum.
At close on Tuesday, the Karachi Stock Exchange’s (KSE) benchmark 100-share index fell 1.10% or 378.35 points to end at 33,958.12.
Elixir Securities, in its report, said most sectors, including index heavy oils and financials traded in the red. Small and mid-cap speculative plays led the declines.
“State Bank of Pakistan’s (SBP) press release highlighting rupee’s stability failed to save the day as equity investors remained anxious over fall out in case of further depreciation.
“Hub Power Company Limited (HUBC PA +0.46%) that is an ideal hedge against rupee devaluation was positive and traded against market direction, while Nishat Mills (NML PA +1.28%) covered recent losses on reports that selling by foreign investors was more or less over,” the report added.
The report stated that market would continue to trade volatile as investors would closely track flows. “Any selling by local capital protected funds and foreigners may result in benchmark index seeing further declines,” it said.
Meanwhile, JS Global analyst Ahmad Saeed Khan said that following an intraday decline in global crude oil prices, the exploration and production (E&P) sector remained under pressure. “News flow of Balochistan trying to persuade the government to increase gas tariff kept the cement and fertiliser sectors bearish.
“Lack of clarity regarding the upcoming monetary policy kept the banking sector under pressure as well, where all big five banks closed in the red,” he said.
Trade volumes fell to 205 million shares compared with Monday’s tally of 220 million shares.
Shares of 352 companies were traded on Tuesday. At the end of the day, 91 stocks closed higher, 237 declined while 24 remained unchanged. The value of shares traded during the day was Rs8.9 billion.
Sui Southern Gas Company (SSGC) was the volume leader with 22.2 million shares, losing Rs1.99 to finish at Rs39.46. It was followed by TRG Pakistan Limited with 39.66 million shares, losing Rs2.06 to close at Rs39.66 and Pace Pakistan Limited with 12.7 million shares, losing Rs0.57 to close at Rs7.71.
Foreign institutional investors were net buyers of Rs45 million during the trade session, according to data maintained by the National Clearing Company of Pakistan Limited.
Published in The Express Tribune, November 11th, 2015.
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