The KSE-100 index declined by 383.22 points during the week ended on August 19, 2011 and closed below 11,000 points, after 39 weeks, at 10,879.82 points due to panic selling on investors' concerns over declining trend in the global equity markets and deteriorating law and order situation in Karachi.
Trading remained extremely low as the majority of investors remained on sidelines and the average daily volume at ready counter declined drastically by 49 percent to 36.33 million shares as compared to previous week's 71.17 million shares.
Market capitalisation declined by Rs 100 billion to Rs 2.899 trillion. Foreign investors remained on the selling side and withdrew $5.635 million from the equity market.
On Monday, the market opened under pressure and the index lost 95.94 points to close at 11,166.10 with extremely low volume of 25.904 million shares. On Tuesday, the index recovered 67.65 points on the back of selective buying and closed at 11,233.75 with 26.768 million shares. The trend continued on Wednesday and the index gained 36.20 points to close at 11,269.95 with improved volume of 46.330 million shares.
On Thursday, the index lost 141.43 points and closed at 11,128.52 with 41.622 million shares. On Friday, the index registered a heavy fall of 248.70 points due to panic selling over investors' concerns on declining trend in global equity markets and deteriorating law and order situation in the city and closed the week at 10,879.82 with 41.012 million shares.
"Amid fears that another recession may be in the offing, global equity markets continued to witness sharp declines, with the local bourse following suit", Sana Hanif, an analyst at JS Global Capital said. On Friday, the KSE-100 index lost 249 points, breaking below the psychological 11,000 points barrier after 39 weeks and closed at 10,880 level, down 3.4 percent on week-on-week basis.
Dull volumes are also attributed to the Ramazan factor and deteriorated law and order situation in Karachi.
The ECC approved increase in margins on regulated products by 30-32 percent for OMCs and allowed incidental charges for refineries. As a result ATRL was up 1.2 percent on WoW basis.
In its recently released quarterly review, MSCI Barra maintained status quo on Pakistan's weightage at 3.98 percent in the FM Index with OGDC, MCB, FFC, HBL, Engro, POL, PPL, NBP, PSO, UBL, Hubco and PTCL remaining part of it.