Index sheds 221.64 points

Bearish trend was witnessed at Karachi share market during the week ended on April 15, 2011 and KSE-100 index declined by 221.64 points to close at 11,684.23 points. Trading remained very low due to investors' lack of interest, an the average daily volume at ready counter declined to 60.52 million shares, or 17.2 percent, as compared to previous week's 73.13 million shares.
Market capitalisation also declined, by Rs 60 billion, to Rs 3.113 trillion.
Foreign investors remained net sellers of $2.9 million shares against previous week's inflow of $3.4 million.
On Monday, the market opened under pressure and the index declined by 37.10 points to close at 11,868.77 points with volume of 60.305 million shares.
On Tuesday, the index lost 72.68 points and closed at 11,796.09 points with 50.592 million shares.
The trend continued on Wednesday and the index decreased by 61.37 points to close at 11,734.72 points with 45.822 million shares.
On Thursday, the index lost 82.18 points and closed at 11,652.54 points with 89.026 million shares.
On Friday, the index recovered 31.69 points on the back of investors' interest at low levels and closed the week at 11,684.23 points with 56.838 million shares.
Yawar Uz Zaman, analyst at Invest Capital and Securities, said that the index faced bearish sentiment and closed on a negative note.
He said that investors remained on the sidelines amid rising power and gas shortages in the country and its impact on the key sectors of the economy. For instance, SNGPL stopped gas supplies to four fertiliser plants due to raising gas demand and falling output. Similarly, notorious circular debt issue did not seem to be resolved in the near future as OGDC rejected PSO's proposal to payoff its debt through the dividend securitisation.
Although betterment was seen on the economic front where rupee picked up strength against dollar with remittances touching all-time high monthly numbers at over $1.0 billion mark for March 2011 and exports also hitting the record high at $2.49 billion. Eventually, average traded value during the week stood at $27 million (down 27 percent on week-on-week basis) while average traded volume was at significantly low at 60 million shares.
Rabia Tariq at JS Global Capital said that despite major corporate result announcements expected this week, the market failed to develop any momentum, losing 1.9 percent on week-on-week basis. Also, average daily volume dropped to a 29-week low of 60.52 million shares, down 17 percent. Further, macro data released during the week remained encouraging, with remittances and exports reaching record highs in March.