Mixed trend on KSE

The Karachi share market witnessed mixed trend during the week ended on July 2, 2011 and the KSE-100 index rose to 12,484.17 points with a modest gain of 19.91 points. Trading remained extremely low and the average daily volume at the ready counter declined to 56.41 million shares, or 8.2 percent, as compared to previous week''s 61.48 million shares.
Market capitalisation also declined, by Rs 2 billion, to Rs 3.285 trillion. On foreign investors'' front, KSE witnessed a net outflow of $38 million (including around $37 million off-market trades), compared to previous week''s net outflow of only $3.6 million.
On Monday, the market opened under pressure and the index, after moving both ways, closed almost flat at 12,464.49 points with a meagre gain of 0.23 points with volume of 52.797 million shares. On Tuesday, the market witnessed bearish trend and the index lost 102.05 points to close at 12,362.44 points, with 67.071 million shares.
On Wednesday, the index recovered 60.86 points on the back of fresh buying on dips and closed at 12,423.30 points with 61.588 million shares. On Thursday, the index gained 72.73 points to close at 12,496.03 points with 65.925 million shares.
On Friday, the market witnessed mixed trend and, after moving both sides, the index closed the week at 12,484.17 points, down 11.86 points, with extremely low volume of 34.689 million shares.
Sana Tariq at JS Global Capital said that the week saw political manoeuvres reaching new heights when MQM decided to quit both federal and provincial governments, which was then followed by resignation of the Sindh governor. However, presence of a few corporate triggers caused the KSE-100 index to close flattish at 12,464 level with average daily volume ending lower by 8 percent at 56 million shares.
An interesting observation, though, was a 32 percent decline in the average traded value as heavyweight likes of MCB, Engro and PPL witnessed massive battering. Nestle, however, continued to dominate the market, rising 15 percent. Further, the FBR reported that tax collection target of Rs 1,588 billion for FY11 had been achieved. With this, the week concluded the year FY11 with a notable gain of 29 percent, outperforming regional markets by 7 percent.