Karachi stocks remained almost flat with benchmark KSE-100 index rising marginally by 0.5 percent to 34,426.75 points during the week which ended on November 6. During the week under review, equity investors traded on average 187 million shares, up 13 percent week-on-week (WoW). The value of stocks traded, however, contracted two percent to Rs 9 billion or $86.6 million in US dollars terms.
Offshore investors appeared as net seller and sold portfolios worth $10.2 million. Major selling of $12.7 million and $5.7 million was recorded, respectively, in textile and banking sectors. While local mutual funds and companies made net buying of $12.7 and $7.4 million.
Analysts said that trading activity remained lacklustre and overall concentration tilted towards mid and small cap stocks in the better half of the week.
The scrips which were traded the most included those from pharma, cement, IPPs, oil and gas, banks and foods sectors. The banks, analysts said, underperformed the benchmark post CPI announcement which incited fears of further rate-cut in the upcoming Monetary Policy Statement.
The week's positive close, Topline analysts said, was despite continuous foreign selling and lack of any market trigger.
"The index remained flat over the week," said Hamza Kamal of Shajar Capital.
JS analyst Faizan Ahmed said that equities continued upward momentum amidst chronic volatility originating from crude oil prices and foreign selling.
"Unabated foreign selling of foreign funds and investors have continued off late owing to massive redemptions in the frontier market funds," he said.
Local investors, the analyst lauded, continued to absorb this selling despite sentimental concerns over the SECP investigations against some brokers and investors.
"Second last trading session of the week remained an encouraging one with foreign investors finally turning net buyers in the market, providing impetus to overall participation in the final session," said Ahmed.
Important highlights of the week were: successful conclusion of IMF-Pak talks in Dubai, likely discontinuation of Guddu gas for EFERT, impressive cement numbers, CPI inflation clocking-in at 1.6 percent YoY and hike in MS and HSD prices.
"Moving forward, we expect the market to continue its flattish momentum until and unless there is a major trigger to prove otherwise," said Hamza.