Bearish trend at the Karachi Stock Exchange (KSE) continued for the third consecutive week as KSE-100 index shed 33.58 points to 10705.87 points level during the week ending on November 18, 2006 on week-on-week basis, while KSE-30 share index recovered 46.50 points to close at 13219.99 points.
Average daily volume in the ready market was down by 10 percent in shares and 17 percent in value terms. The average daily turnover in the ready market shrank to 167.338 million shares against 185.483 million shares of the previous week. The market capitalisation declined by Rs 9 billion to Rs 2.953 trillion.
Analysts said that the index hardly budged this week, losing a marginal 34 points to close at 10706 points level, as investors chose to stay on the sidelines amid the uncertainty prevailing at the bourses.
Unresolved issues like OGDC GDR, forensic report on the March 2005 crisis, launch of new risk management system and the transfer of in-house badla to CFS turned the market sentiment to cautious, Khurram Ghufran, an analyst at KASB Securities, said.
On Monday, the market opened on a positive note with the government giving re-assurance on OGDC GDR and the delay of the forensic report, but profit taking cut short the bull-run and KSE-100 index close at 10743.84 points, up by only 4.39 points.
A confirmation by the government that OGDC GDR would be offered on London Stock Exchange did breathe some life back into the market on Tuesday, as a result of which, the KSE-100 index breached the 10800 points level without any major resistance.
The market opened on a positive note and the buying rally across the board pushed the KSE-100 index to 10,875.96 point intra-day high level and finally settled at 10869.32 points, gaining 125.48 points. Banking and cement sectors gave boost to the index, as punters came in to square their already short positions.
The market opened on positive note on Wednesday and remained in the green for most of the day on report regarding OGDC GDR issue. However, the investors opted for profit taking at available margins, which pushed the market down to 10799.70 points level. Finally the KSE-100 share index closed at 10812 level, losing 57.46 points.
On Thursday the market again opened on a positive note but selling at higher levels brought down the KSE-100 index to 10710.71 points intra-day low level. However, 160 points recovery on buying in oil exploration scrips helped the KSE-100 share index to close at 10850 points with a net gain of 38 points.
On Friday, the market made a bull-run in the first session on rumours of some major oil discovery by POL and its interest in acquiring PSO pushed their prices up. However, investors panicked in the second session on report of drop in oil prices, rumours that OGDC''s GDR may be offered at a discount to the market price and a KSE notification requesting members to provide information about in-house badla and placing shares in CDC block account turned the market sentiment negative. As a result, the KSE-100 index shed 144.17 points and closed at 10705.87 points level on the last trading session of the week.
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