Mixed trend on KSE

The Karachi Stock Exchange experienced mixed trend during the week ended on August 27, 2011, shortened to 4 days, the KSE-100 index closed at 10,901.76 points with a marginal gain of 21.87 points. "The index showed a timid recovery as the index appreciated by a meagre 0.2 percent during the week, after three consecutive weeks of decline", one analyst said.
The worsening law and order situation, coupled with continued uncertainty in global financial markets, kept the investors to sidelines with average daily volume dipping to 35.73 million shares, or 1.6 percent, as compared to previous week's 36.33 million shares.
On Monday, the market opened under pressure. However, late buying in some select stocks supported the index to close in positive at 10,894.15 points with a gain of 14.33 points with volume of 35.727 million shares.
On Tuesday, the index lost 51.89 points and closed at 10,842.26 points with 22.397 million shares.
On Wednesday, the KSE index recovered 98.82 points and closed at 10,941.08 points with 39.979 million shares.
On Thursday, the index lost 39.32 points and closed the week at 10,901.76 points with 44.820 million shares.
The market remained closed on Friday on account of Jummat-ul-Wida.
Furqan Ayub, an analyst at JS Global Capital said the index showed a timid recovery after three consecutive weeks of decline and appreciated by a meager 0.2 percent. However, worsening law and order situation coupled with continued uncertainty in global financial markets kept investors sidelined with average daily volumes dipping by 1.6 percent.
After the US credit rating fiasco, fears of a double dip recession continue to haunt investors globally as they await Fed's decision on another round of quantitative easing. Amid these fears, rating agency Moody cut Japan's long-term sovereign debt rating, citing concerns about country's deficit and borrowing levels. Continued uncertainty in global markets and the unpleasant law and order situation locally has kept the foreigners at bay as they bought shares worth only $1.0 million.