A bearish trend persisted at the Karachi share market during the week ended on June 17, 2011 and the KSE-100 index lost 16.45 points to close at 12,361.32 points. Trading remained extremely low and the average daily volume at ready counter declined to 53.14 million shares, by 52.7 percent, as compared to previous week''s 112.32 million shares.
Market capitalisation declined by Rs 14 billion to Rs 3.265 trillion. Foreign investors remained net sellers of shares worth $451,000 during the week.
On Monday, the market opened on a bearish note and the index lost 24.41 points to close at 12,353.36 points with volume of 63.069 million shares.
On Tuesday, the index declined by 15.42 points and closed at 12,337.94 points with 54.170 million shares.
On Wednesday again the index lost 20.79 points to close at 12,317.15 points, with 54.808 million shares.
On Thursday, the index recovered 51.97 points and closed at 12,369.12 points with 45.979 million shares.
On Friday, the market remained in the grip of negative sentiment and the index lost 7.80 points to close the week at 12,361.32 points with 47.679 million shares.
Yawar uz Zaman, analyst at Invest Capital and Securities, said that the market saw bearish sentiment amid lack of interest by both foreign and local investors, amid only a few positive triggers. The index traded in thin volumes throughout the week except the second last day of trading, when the market witnessed an increase of 52 points after announcement of early board meeting of PPL with an expectations of Rs8/share dividend.
Meanwhile, the government was relying more on borrowings for budgetary support, which massively shot to Rs 781 billion, up 85 percent on year-on-year basis, including Rs 293 billion and Rs 488 billion from SBP and other scheduled banks, respectively. On the other hand, on the economic front, foreign reserves improved to $17.5 billion, mainly due to the inflow of flood-aid provided by the US. On the local facade, the next annual development programmer provides Rs 3.7 billion for Thar coal to wrap up power shortages and developing coal reserves for cost-effective energy.
Mustafa Bilwani at JS Global Capital said that the average daily volume at the bourse dropped by 53 percent to 53 million shares as the market lacked triggers to ignite any trading activity. However, PPL remained a notable exception after it announced an emergency board meeting, with a possibility of announcing an early cash dividend. Further, key economic data for the May were released, with remittances and exports both registering impressive numbers in May.