Bearish trend was witnessed at the Karachi share market during the week ended on October 3, 2009 and KSE 100 index lost 209.10 points, closimg at 9,455.15 points. "The investors opted profit taking due to unproductive Friends of Democratic Pakistan (FoDP) meeting in New York and SBP decision to keep policy rate unchanged", analysts said.
The investors' lack of confidence was evident as the average daily volumes at ready counter declined by 26 percent to 310.785 million shares. Market capitalisation declined by Rs 51 billion to Rs 2.744 trillion.
Foreign investors' interest continued with an inflow of $14 million of foreign portfolio investment. They bought shares worth $37 million and sold shares worth $23 million. The National Clearing Company of Pakistan (NCCPL) has started releasing further break-up of investment portfolio figures from October 1, 2009. According to NCCPL data in the first two days of the month mutual funds and individuals were net sellers of $2 million and $3 million, while companies bought shares worth $5 million.
On Monday, the market opened on a negative note and the index lost 254.67 points to close at 9,409.58 points. The volume was 345.320 million shares.
On Tuesday, the index gained 65.90 points to close at 9,475.48 points with 353.639 million shares mainly due to foreign investors' support. On Wednesday, the investors opted for profit taking, resulting in index decline of 125.80 points to close at 9,349.68 points, with 432.826 million shares.
On Thursday, the index lost 48.50 points to close at 9,301.18 points with 222.370 million shares. On Friday, the index gained 153.97 points to close at 9,455.15 points with 199.771 million shares due to local investors' interest.
Mustafa Bilwani at JS Global Capital said that the investors preferred to book profits on the back of an unproductive FoDP meeting in New York. The SBP announced the Monetary Policy Statement (MPS) deciding to keep the policy rate unchanged.
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