KARACHI (Reuters) The Karachi stock market fell more than 1.
2 per cent on Thursday because of the deteriorating security situation in Karachi.
At least 30 people have been killed in a fresh outbreak of violence in Karachi, but police on Thursday said the clashes now focused more on gang turf wars after months of ethnic and political disputes.
"The deteriorating law and order situation of the city coupled with lower than expected earnings by National Bank of Pakistan caused index to fell by more than 1 percent," said Samar Iqbal, a dealer at Topline Securities Ltd.
National Bank of Pakistan (NBP) reported on Thursday a net profit of 8.
13 billion rupees ($93.
80 million) for the first half of 2011, compared with a net profit of 3.
86 billion rupees ($44.
4 million) in the same period last year.
The result was lower than analyst expectations and NBP ended 4.
98 percent lower at 43.
47 rupees.
The Karachi Stock Exchange's benchmark 100-share index closed 1.
25 percent, or 141.
43 points, lower at 11,128.
Volume fell to 41.
62 million shares from 46.
33 million shares traded on Wednesday.
In the money market, overnight rates rose to 13.
40 percent, compared with the previous day's close of between 10.
75 percent and 11.
0 percent amid tight liquidity in the interbank market.
APP adds from Islamabad: Islamabad Stock Exchange (ISE-10) witnessed bearish trend here on Thursday, as the index was down by 35.
64 and closed at 2,419.
President Association for Investor's Awareness (AIA), M M Hassan told APP that the panic selling by foreign investors led the bearish trend in the stock markets.
According to National Clearing Company of Pakistan Ltd (NCCPL), the foreign investors had off-loaded positions in the stock markets worth $1.
47 million, he added.
Senior Equity Dealer, Isamil Iqbal Pvt Ltd, Zaheer Ahmed said that the prevailing violence in the commercial hub of the country (Karachi) caused the decline in the stock markets.
He said that the increase in the turnover of shares showed the huge buying by local institutions at lower level of the index and was the positive indication in the future for the markets.
Total shares traded were 52,001, which were up by 28229 as compared to previous day's trading.
Out of 94 companies, the price of 18 increased while the price of 76 decreased.
The price of top gainer Blessed Textile increased by Rs.
02 while the price of top loser Unilever Pakistan decreased by Rs.
Lotte Pakistan PTA, Allied Bank Limited and Attock Refinery remained volume leaders with volumes of 20,500, 12,500 and 6,001 respectively.