ISLAMABAD: Local fertiliser companies’ shares fell on Thursday, dragging Pakistani stocks down with them, after firms lowered the price of urea fertilizer, dealers said.
The Karachi Stock Exchange (KSE) benchmark 100-share index ended 1.32 per cent, or 193.4 points, lower at 14,420.19 with a volume of 232.5 million, compared to Wednesday’s close of 14,613.59.
“Urea price reduction by local fertilizer companies, coupled with institutional selling, triggered across-the-board selling,” said Samar Iqbal, a dealer at Topline Securities.
“Fertilizer stocks ... fell after news of the urea price decline.”
The Fauji Fertilizer Company dropped 3.4 per cent to 122 Pakistani rupees, the Fatima Fertilizer Company fell 3.01 per cent to 26.08 rupees, and Engro Corp ended 4.43 per cent lower at 113.66 rupees.
In the currency market, the Pakistani rupee ended almost flat at 90.85/89 to the dollar, compared to Wednesday’s close of 90.80/85.
The rupee has been supported by remittances, which rose 20.23 per cent to $10.877 billion in the first 10 months of the 2011/12 fiscal year, compared with $9.046 billion in the same period last year.
In April, remittances totaled $1.141 billion.
Overnight rates in the money market ended at 11.90 per cent, up from Wednesday’s close of 9.10 per cent because of decreased liquidity in the market.