Business | Markets
Oil & Gas leads fall on Karachi index
Pakistan's key share index fell for a second day on Tuesday, led by Oil & Gas Development Co, on concerns more companies may report weaker earnings as a drop in shares hurt their investment portfolios.
- Bloomberh
- Published: 23:04 February 10, 2009
Mumbai: Pakistan's key share index fell for a second day on Tuesday, led by Oil & Gas Development Co, on concerns more companies may report weaker earnings as a drop in shares hurt their investment portfolios.
The Karachi Stock Exchange 100 index fell 117.82 points, or 2.1 per cent, to 5,455.66 at close. Oil & Gas, the biggest fuel explorer, declined 3.1 per cent to 48.61.
Pakistan companies are expected to report investment losses after the benchmark measure dropped 58 per cent in 2008, the first decline in seven years, analysts said. Financial results are being announced this month.
"The requirement of passing on devaluation of investments to net profit is haunting investors," said Khurram Schehzad, senior research analyst at Invest Capital & Securities Ltd, in Karachi. "It will depress earnings this season."
MCB Bank Ltd, the biggest lender in the country by market value, fell as it delayed the release of its financial results to February 16, after postponing its board meeting. MCB fell three per cent to Rs117.
Pakistan Petroleum Ltd., the biggest gas producer, fell 2.3 per cent to Rs147.50. Habib Bank Ltd, the bank with the most branches, fell 5.3 per cent to Rs75.02.
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