KARACHI, Jan 1: Selling pressure triggered by energy shares led the country’s main stock index to post losses on the first day of the new year and trading activity was dull as global markets were closed on Tuesday, dealers said.

“As major global markets were closed dull activity was seen at local bourse also. Closure of local banks also affected the activity and forced small investors to book profit. Bank of Punjab closed at lower limit after company announced a huge issue of right shares,” said Samar Iqbal, a dealer at Topline Securities Ltd.

The KSE 100-share index ended 0.65 per cent, or 110.46 points, lower at 16,794.87 points. It made an intra-day high at 16,935.48 points and made an all time high at 17,032.05 in the previous trading session.

Turnover decreased to 119.68 million shares compared with 177.67m shares on Monday. Trading value fell by more than Rs2 billion to Rs2.14bn from Rs4.44 in the previous trading session and market capitalisation stood at Rs4.22 trillion, compared with Rs4.24tr on Monday.

Dealers also said there was selling as the index approached 17,000 points level as its a technical barrier and it would take a few days before it can comfortably consolidate above that level.

“Sell-off that triggered at 17,000, forced the market participants to reduce holdings, led by E&P (Exploration and Production) stocks negativity soon engulfed the front and lower tier stocks thus forcing the benchmark to undergo a technical adjustment which led losses to enter into triple digits towards the closing bell,” said Hasnain Asghar Ali at Escorts Capital Ltd.

The energy sector witnessed selling pressure as Oil and Gas Development Co Ltd ended 69 paisa lower at Rs191.92, Pakistan Oilfields shed Rs1.42 to close at Rs436.12 and Pakistan Petroleum Ltd closed 46 paisa lower at Rs176.33. Out of the 12 companies listed in the energy sector, one had a positive closing.

The decline in the market was despite the inflation data for December coming in within market expectations. December inflation numbers gauged by CPI stood at 7.9 per cent as against 6.9 per cent in November. The number falls with the consensus range of 7.5 to 8 per cent.

Foreign investors turned into net sellers as they sold shares worth a net $134,125 on Tuesday, compared with buying a net of $1.08m the previous trading session. In December there total net selling to $7.61m. For 2012, foreign investors bought shares worth a net $122.76m.

Banks were the major buyers in the market as they bought equities worth $5.63m. However companies sold shares worth a net $5.16m. The biggest gainer was Noon Pakistan which ended Rs2.53 higher at Rs53.23, followed by Pak Tobacco which closed Rs2.4 higher at Rs69.96.

Unilever Pakistan witnessed the biggest loss as it shed Rs100 to Rs10,000 followed by Bata Pakistan, which fell Rs50 to close at Rs1301.

The KSE-30 index ended 0.50pc, or 69.06 points, lower at 13,694.94.

Out of the 342 companies traded, the value of 83 increased, 239 decreased while 40 remained unchanged.

The second and third tier companies dominated the 10 most active traded stocks: Bank of Punjab ended 99 paisa lower at Rs9.71 on turnover of 15.82m shares, Pakistan International Airlines rose 39 paisa to Rs4.42 on 11.32 million shares and Byco Petroleum shed 35 paisa to Rs14.10 on 8.23m shares.

Jahangir Siddiqui Company Ltd ended 56 paisa lower at Rs15.58 on 7.83m shares, Silkbank fell 7 paisa to Rs2.21 on 5.1m shares and Fauji Cement closed 12 paisa lower at Rs6.42 on 4.45m shares.

Nishat Mills gained 23 paisa to rs64.08 on 3.61m shares, NIB Bank shed 11 paisa to Rs2.52 on 3.38m shares and Maple Leaf Cement increased by 2 paisa to Rs14.59 on 3.06m shares. Samba Bank rose 31 paisa to Rs3.30 on 2.98m shares.