The Karachi share market witnessed positive trend during the week ended on May 13, 2011 and the KSE-100 index gained 87.39 points to close at 11,967.35 points. Trading improved slightly and the average daily volume at ready counter increased by 1.5 percent to 68.81 million shares as compared to previous week's 67.77 million shares.
Market capitalisation increased by Rs 19 billion to Rs 3.176 trillion. Foreign investors' interest continued and they remained net buyers of shares worth $5.7 million. However, companies were net sellers of $9.7 million.
On Monday, the market opened on a positive note and the index increased by 52.72 points to close at 11,932.68 with volume of 78.651 million shares.
On Tuesday, the index gained 79.34 points to close at 12,012.02 points with 59.957 million shares.
On Wednesday, the index registered an increase of 24.34 points and closed at 12,036.36 points with 84.426 million shares. On Thursday, the investors opted for profit taking and the index declined by 74.18 points to close at 11,962.18 points with 64.353 million shares.
On Friday, the market witnessed a mixed trend. However, the index managed to close in positive at 11,967.35 points with 5.17 points up with trading of 56.643 million shares.
Yawar Uz Zaman, an analyst at Invest Capital and Securities, said that the index witnessed rising trend except the second last day of trading session. Investors somehow seemed optimistic despite the existing uncertainty about the future relationships between the coalition partners ie Pakistan and the US.
He said after killing of bin Laden, one of the key factors affecting market activity during the week was debate on slashing Pakistan aid among US congress members. On the economic front, solid remittances flow in April 2011 (over $1 billion), robust exports coupled with decline in country's trade deficit and significant growth recorded in the Manufacturing sector, supported market activity to certain extent. Furthermore, critical investment decision at this juncture announced by China (in the form of investment in Thar coal as well as increasing overall trade) provided the investors with little more confidence.
Sana Hanif at JS Global Capital said while concerns over Pak-US relationship in the aftermath of Osama bin Laden's death remained, the market also lacked excitement as participants continued to monitor budget related news flows, particularly with regards to the IMF directed reforms.
Initially, news of early commencement of production at Maramzai field lifted E&P stocks. However, fall in oil price led the oil and gas sector to under-perform the market. Moreover, fertilizer sector stocks showed positive momentum on news of possible price hikes in light of the gas curtailment issue.