Pakistan Stocks Drop Most in Two Years

Pakistan Stocks Drop Most in Two Years

KSE 100 Index (KSE100) falls 3.3% to 22,322.42, heading for biggest drop in two years and paring this year’s gain to 32 percent. • Lafarge Pakistan Cement slides 8.4%, Bank Punjab loses 7.5%, Fauji Cement drops 6.4% * Investors are taking profit before the long weekend, Ovais Ahsan, head of international equity at JS Global Capital, says by phone in Karachi * Cement producers also down on reports of price declines, Ahsan says. * Investors are also concerned about the recent inflation numbers, says Raza Jafri, head of research at AKD Securities in Karachi by phone NOTE: Pakistan July consumer prices rose 8.26% from yr ago; est. 7.9%, data showed Aug. 1. To see story, click FIFW NSN QUCXQ0YHQ0Y NOTE: Stock market will be shut Aug. 8 and Aug. 9 for Eid holidays NOTE: Lafarge Pakistan Cement has gained 79% this year, Fauji Cement has jumped 126% Trading was expected to continue being sluggish and weak in the follow up to Eid, as foreign investors also remained on the sidelines. Higher than expected inflation rates announced last week continued to pull down the market as investor outlook remained negative. The fertilizer sector continued to see heavy losses due to the proposed increase in the gas rate tariff for commercial users. Engro Corp shed its by price by Rs 7.55 after trading over 6 million shares to close at 146.15. Its subsidiary Engro Foods also suffered, going down by 6.61 rupees. Cement firms continued to decline as well, amidst heavy trading in the sector, with all major firms except Maple Leaf straying in the red. Out of a total of 338 shares that were up for trade, 236 were in decline while only 71 shares gained with 31 shares remaining unchanged. The traded volume stood at 232 million shares, up from 199 million shares traded on the previous trading day, Thursday. Trade value stood over Rs 10 billion.