Index loses 54.48 points

After witnessing a mixed trend at the Karachi share market during the outgoing week ended March 25, 2011, the KSE-100 index finally closed at the level of 11,552.13 points, with a net loss of 54.48 points on week-on-week basis.
Trading activities also remained thin as the average volumes at ready counter declined by 44.4 percent to 62.56 million shares as compared to previous week''s average of 112.44 million shares. The overall market capitalisation declined by Rs 30 billion to stand at Rs 3.081 trillion.
The foreign investors remained net buyers of shares worth $4.8 million.
The market opened under pressure on Monday and the index registered a heavy loss of 231.47 points to close at 11,375.14 points with total volume of 58.535 million shares.
However, the investors'' interest revived on Tuesday and the index recovered 112.92 points to close at 11,488.06 points with 62.669 million shares. The market remained closed on Wednesday on account of Pakistan Day.
On Thursday, the index gained another 76.19 points due to investors'' interest at low levels and closed at 11,564.25 points with 62.660 million shares. However, the investors once again opted for profit taking on Friday and the index lost 12.12 points to close the week at 11,552.13 points with 66.388 million shares.
Yawar Uz Zaman, an analyst at Invest Capital and Securities said that maintaining a struggling stance during the week, the benchmark 100 index lost 54 points, with activity remaining weak, despite news flows throughout the week. On the positive side, government of Japan finally assured to Pakistan that they will not revoke its aid despite having such a terrible disaster. Whereas on the economic front, lesser government borrowing from SBP and revenue measures taken by the government somehow boosted investors confidence during the week, pushing index to tap the psychological levels of 11,600pts. But eventually, the expectation about increase in local oil prices in the upcoming month and fears about cut in US aid turned investors cautious. In the meantime, World Bank (WB) swapped some of its projects in Pakistan by winding up projects worth Rs 73 billion and initiating fresh projects worth $700 million including $100 million for gas distribution.
Rabia Tariq at JS Global Capital said that the bearish spell continued to cloud the market in the outgoing week as the local bourse closed in the red for the second week running. The volumes too declined by 44 percent; with all eyes on the Monetary Policy statement likely to be announced Saturday. Further, the SBP released data for NPLs with such loans for all banks rising highest in two years in the final quarter 2010.
Among the heavy weights, Oil & Gas stocks witnessed a correction this week, losing 1.3 percent whereas the chemical sector gained 1.8 percent. Moreover, Cement scrips too rose during the week, up 1.2 percent as cement prices increased post hike in taxes.