Bears gain grip over KSE
Negative sentiments prevailed on Karachi Stock Exchange (KSE) during the past week ended on Friday: the benchmark KSE-100 index lost 294.35 points, closing at 16,648.84 points, down from 16,943.19 points a week ago. "Investors at the local bourse opted to book profits during the first week of the new year amid growing political uncertainty in the country," said Naveed Tehseen, an analyst at JS Global.
Copyright Business Recorder, 2013
He said that KSE-100 index lost 1.7 percent week-on-week. Volumes grew by 7.4 percent week-on-week to 148 million shares. Foreigners remained net sellers, offloading shares worth $2 million this week.
On the macro front, he said that forex reserves improved to $13.8 billion after the release of $688million under the Coalition Support Fund (CSF) while CPI for December last year clocked in at 7.9 percent year-on-year. Other key highlights of the week included hike in natural gas tariff by 6.14%, SBP revising refinance rates for various finance schemes and government plans to issue Rs15 billion TFCs to ease the circular debt, he added.
Week-on-week basis, total market capitalisation fell by Rs84.22 billion to Rs4.172 trillion from Rs4.256 trillion a week ago.
Average daily trading value witnessed increase of 10.5 percent to Rs3.41 billion, up from Rs3.08 billion. Trading activity increased by 7.4 percent during the week and daily volumes also increased to 148.13 million shares against the previous week's average volume of 137.89 million.
On the first day of week, which was also first day of new year, bears defeated bulls in Karachi stock market, depressing the KSE-100 index. After touching an intra-day high level of 16,935.48 points, the benchmark KSE-100 index lost 110.46 points to close at 16,794.87 from 16,905.33 points.
On Wednesday, despite opening in the green zone, Karachi Stock Exchange witnessed a bearish trend and the benchmark KSE-100 index lost 305 points to close at 16,490 points from 16,795 points.
On Thursday, stocks showed some recovery as investors hoped for early resolution of political issues. The benchmark KSE-100 gained 98.55 points to close at 16,588.54 points, up from 16,490 points a day ago.
On the last trading day, Karachi Stock Exchange witnessed a bullish trend led by buying in blue chip scrips and the benchmark KSE-100 gained 60.30 points to close at 16,648.84 points from 16,588.54 points a day ago.