Mixed trend on KSE

Mixed trend was witnessed at Karachi Stock Exchange during the week ended on April 8, 2011, and the KSE-100 index closed at 11,905.87 level with a paltry gain of 20.23 points. Foreign inflows continued to support the market with a fresh net inflow of $3.4 million. However, local investors'' participation remained very thin during the week.
Due to absence of local investors, trading remained low and the average daily volume at ready counter declined by 6.4 percent to 73.13 million shares as compared to previous week''s 78.12 million shares.
Market capitalisation increased by Rs 6 billion to Rs 3.173 trillion. On Monday, the market opened under pressure and the index after moving both ways closed 12.36 points lower at 11,873.28 with low volume of 60.030 million shares.
On Tuesday, the index recovered 28.09 points on the back of selective buying and closed at 11,901.37 with improved turnover of 74.126 million shares.
On Wednesday, the index registered increase of 31.81 points and closed at 11,933.18 with 88.303 million shares.
On Thursday, the investors opted for profit taking on available margins and the index lost 84.34 points to close at 11,848.84 with 75.091 million shares.
Renewed buying on Friday supported the index to recover 57.03 points and closed the week at the level of 11,905.87 with 68.086 million shares.
Yawar Uz Zaman, analyst at Invest Capital and Securities, said that despite witnessing an increase of 1.48 percent in CPI, which made the inflation stand at 13.16 percent for the month of March, coupled with the increase in power tariff and hike in local oil prices, market sustained the pressure and the index closed for the week 20 points higher in comparison to previous week.
"Although average traded value stood at $37 million, down by 16 percent on week-on-week basis and average volumes shrunk by 6.4 percent, positivity was witnessed as market enjoyed net foreign inflows of $3.4 million for the week, up 17 percent", he added.
On the economic front, the FBR is yet to raise Rs 572 billion in last quarter to reach the revised revenue target of Rs 1.59 trillion, missing which could result in fiscal deficit exceeding the level of 5.5 percent of GDP. On the positive note, despite the devastation caused by floods, ADB sees Pakistan''s economy growing by 3.7 percent during the current fiscal year of FY11.
Sana Hanif at JS Global Capital said that following previous week''s range-bound activity, the week was largely unexciting for the market as the KSE-100 index gained 20 points. The investors preferred to stay on sidelines as reflective from average daily volumes standing lower at 73 million shares with foreign buying coming in at $3.4 million.
Autos and refineries were in the limelight in the outgoing week. INDU rallied on expectation of higher demand for its new Corolla variant. Refineries, particularly NRL, performed exceptionally on the back of improved GRMs post closure of refining capacities in Japan. Despite rising international oil prices, E&P stocks underperformed during the week, with the exception of Friday when investors started betting on E&P stocks on soaring international oil prices.