The Karachi share market witnessed bearish trend during the week ended on April 26, 2008 and the benchmark KSE-100 index declined by 241.60 points to close at 15,434.74 points level from 15,676.34 points. "The market remained largely downbeat with weak investor sentiment on resurfacing of rumours regarding SECP investigation of March 2005 crisis", an analyst said.
On the other hand, the free float market capitalisation-based KSE-30 index lost 345.17 points and settled at 14,646.75 points level. The average daily volume of ready market declined by 2.5 percent to 251.476 million shares as compared to previous week''s average of 257.988 million shares. However, the average daily turnover of futures market significantly increased by 64 percent to 105.663 million shares against 64.274 million shares last week.
Market capitalisation declined by Rs 66 billion to Rs 4.724 trillion.
The market opened on a positive note on Monday and the KSE-100 index hit 15,740.23 points intra-day high level. However, the market could not sustain that level due to profit taking opted by the investors, which pushed the index in the negative zone. Finally the KSE-100 index closed at 15,654.79 points level with a net loss of 21.55 points.
The KSE-30 index lost 30.41 points and settled at 18,961.51 points level.
On Tuesday, the market witnessed selling pressure and KSE-100 index declined by 111.27 points to close at 15,543.52 points as the investors opted for profit taking in overbought scrips. The KSE-30 index lost 161.99 points and settled at 18,799.52 points level.
On Wednesday, the KSE-100 index lost 73.38 points to close at 15,470.14 points level due to profit-taking mainly in overbought scrips. The KSE-30 index declined by 138.10 points and settled at 18,661.42 points level.
On Thursday, bearish trend continued and the KSE-100 index lost 165.24 points to close at 15,304.90 due to heavy selling pressure in the rollover week. The KSE-30 index declined by 269.26 points and settled at 18,392.16 points.
On Friday, healthy buying was witnessed at the market mainly in banking and fertiliser sectors and the KSE-100 index recovered 129.84 points to close at 15,434.74 points level. The KSE-30 index gained 254.59 points and settled at 18,646.75 points level.
Farhan Rizvi, an analyst at JS Global Capital, said that the capital gain tax issue remained in the limelight as news regarding recognition of capital gains by major groups gave investors strongest hints on potential implementation of capital gains tax. Moreover rumours regarding SECP investigation of March 2005 crisis also caused an element of confusion in the market. The auto sector returned to the limelight during the week as news regarding public offer of Indus Motor share by the sponsors generated high level interest in the group, which rose by a massive 15 percent on week-on-week basis. This offer came via a notice of 7 percent and 4 percent respectively. Moreover, cement sector also under-performed as decline in retention price arouse negative sentiment in the major scrips across the sector.
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