The Karachi share market witnessed a mixed trend during the week ended on February 3, 2012, due to a low participation of local investors, and the KSE-100 index closed at 11,982.62 level, up 22.40 points.

Trading remained low and local investors appeared worried to take fresh position until the affirmation by the Finance Minister to provide relief on the CGT front actually materialise.

Resultantly, average daily volume at the ready counter declined by 36.8 percent to 91.76 million shares as compared to previous week's 145.24 million shares.

Foreign investors were net buyers of shares worth $2.2 million as compared to an inflow of $7.4 million a week ago, down 70 percent.

Market capitalisation increased by 11 billion to Rs 3.116 trillion.

On Monday, the market opened on a depressed note and the index, after moving both sides, closed at 11,883.01 points, down 77.21 points, with volume of 67.056 million shares.

On Tuesday, the index lost 8.12 points and closed at 11,874.89 points with 60.176 million shares.

On Wednesday, the index, on the back of reviving interest of investors on dips, gained 55.66 points and closed at 11,930.55 points with 93.437 million shares.

On Thursday, the index, after moving to both sides, closed at 11,929.78 points, fractionally down by 0.77 points with 107.722 million shares.

On Friday, the index gained 52.84 points and closed the week at 11,982.62 points with 130.416 million shares.

"Despite healthy corporate results, market sentiment remained dull", Yawar Uz Zaman, an analyst at InvestCap, said.

He said the investors stayed worried to take fresh position until the affirmation by Finance Minister to provide relief on the CGT front actually materialised.

"Meanwhile, SC decided to charge the Prime Minister on account of contempt of court, which is likely to bring the heat on political front back in the coming weeks", he added.

Most of the activity was observed in low-tier scrips where investors found it reasonable to book profit for short term.

In the meantime, SBP reported that inflationary pressure would continue to ride till the end of FY12 while the risk still originates from the external front.

The World Trade Organisation (WTO) approved Pakistan-specific EU trade package which would allow tariff-free export of 75 products to European Union and is likely to boost textile exports of the country.

Naveed Tehsin at JS Global Capital said amid the domestic political turbulence and global economic crisis, investors adopted cautious approach during the week.

The bullish momentum linked with the changes in capital gain tax regime started to fizzle out as the index gained only 0.2 percent on week-on-week basis.

Copyright Business Recorder, 2012

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