Index sheds 101 points

Investors during the week ending on January 22, 2011 opted for profit taking and the KSE-100 index lost 101 points to close at 12,432 points. Trading, however, improved and the average daily volume at ready counter increased by 25 percent to 234 million shares as compared to previous week''s 185 million shares. Market capitalisation declined by Rs 28 billion to Rs 3.363 trillion.
On Monday, the market opened on a strong positive note and the index surged by 148.40 points to close at the level of 12,681.94 points with 316.809 million shares.
On Tuesday, the investors preferred to book profits and the index lost 23.78 points and closed at 12,658.16 points with 270.8 million shares. on Wednesday, the index lost 80.56 points and closed at 12,577.61 points with 188 million shares.
On Thursday, the index declined by 165.74 points to close at 12,411.87 points with 183.611 million shares. On Friday, the index recovered 20.40 points and closed the week at 12,431.91 points with 202.586 million shares.
Khurram Schehzad, Head of Research at Invest Capital and Securities, said that the market continued its momentum, and started the week on a high, increasing by 148 points on the first trading day reaching the level of 12,682 points.
During the next couple of days, the market showed range-bound activity paired with decreasing volumes. This bearish trend continued on Thursday where market shed 165 points, plummeting down to the level of 12,412 points on the back of diminishing volumes and supply influx in the market. The news of OGDC''s issue of $1.08 billion convertible bonds was not potent enough to pull the market out of its bearish mood, as it closed for the week at 12,432 points, decreasing marginally by one percent on week-on-week basis.
This week market saw average volume at 234 million shares, increasing by 25 percent, but average traded value was at $111 million, down by 4 percent, which signified that investors have been moving from 1st tier to 2nd and 3rd tier scripts on certain instances.