The KSE-100 index gained 161.69 points, or 2.3 percent, during the week ended on June 13, 2009, and closed at 7,056.31 points level despite confusion regarding imposition of new taxes in the budget and absence of any leverage product. Trading activity slightly improved as compared to the previous week and the average daily volume at ready counter increased by 21 percent to 126.641 million shares as compared to 110.968 million shares.
The overall market capitalisation increased by Rs 37 billion on weekly basis to Rs 2.082 trillion. The outflow of foreign portfolio investment continued as the offshore investors withdrew another $6 million from the equity market. The foreigners have now sold shares worth $291 million in the current calendar year. On Monday, the market was volatile from the beginning and the index, after moving both ways, closed at 6,892.00 points level, down by 2.62 points, with a volume of 96.418 million shares.
On Tuesday, fresh buying, mainly in banking, oil and cement sector stocks, supported the index to register gain of 194.78 points to close at 7,086.78 points level, with 155.985 million shares. On Wednesday, the index declined by 39.53 points to close at 7,047.25 points with 140.973 million shares.
On Thursday, the index recovered 44.71 points to close at 7,091.96 points level, with 114.036 million shares. On Friday, the market again witnessed negative trend and the index lost 35.65 points to close at 7,056.31 points level with 125.791 million shares.
Mustafa Bilwani, analyst at JS Global Capital, said that the week was dominated with news flowing in on the budget front and a proposed leverage product, but it failed to ignite any strong pre-budget rally. Investors remained cautious leading to the budget.
He said that textile and cement sectors, which held positive expectations from the budget, remained in the limelight. Proposed FED reduction led to cement's performing well and rising 6.1 percent, whereas likely incentives in the proposed textile policy pushed the textile (composite) stocks up 7.5 percent.
Romessa Mirza, at Invest Capital Securities, said that investors were in a haze throughout the week as uncertainties regarding the upcoming budget mounted and suspicions about the outcome of the budget confused them due to which they did not take a firm stand on either side. The volume leaders of the week were JSCL, DGKC, Lucky, AHL and MCB accounting for 31 percent of the total volumes traded this week.
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