Index gains 36.99 points

After witnessing mixed trend early in the week ending on August 20, 2010, the KSE-100 index closed at 9,860.36 points with a gain of 36.99 points. Trading shrank and average daily volume at ready counter declined to 57.36 million shares as compared to previous week''s 58.69 million shares.
Market capitalisation increased slightly by one billion rupees to Rs 2.760 trillion. On Monday, the market opened under pressure due to selling by local investors and the index registered a heavy declined of 286.24 points to close at 9,537.13 points with volume of 64.301 million shares.
On Tuesday, the market witnessed mixed trend. However, the index closed at 9,677.89 points with a gain of 140.76 points with 63.810 million shares.
On Wednesday, the index recovered 27.11 points and closed at 9,705.00 points with 59.453 million shares.
On Thursday, the index gained 142.61 points and closed at the level of 9,847.61 points with 55.915 million shares due to foreign investors'' and institutional support.
On Friday, the index gained 12.75 points and closed at 9,860.36 points with 43.294 million shares.
Saeed Khalid, analyst at Invest Capital and Securities, said that due to the country''s worst flood, investors were losing their interest in trading in KSE. The KSE-100 index marked a slight gain of 0.4 percent to 9,860.36 points as the market reacted positively upon anticipation of flood related funds, after shedding 3 percent at the start of the week.
The economic side of the country still appeared fragile as the disaster flushed away all agriculture and distribution activity. Broader fiscal concerns were also at the centre of investors'' attention as much lower tax collection is now anticipated. These negative factors dragged the index to below 9,800 points.
Rabia Tariq at JS Global Capital said that the widespread flood crisis kept the bourse volatile throughout the week. The key highlights of the week were ADB''s emergency loan of $2 billion along with the World Bank''s redirected loan of $900 million to Pakistan for flood relief efforts. Moreover, PIB auction came under limelight as the market was expecting a hike in yields but the Ministry of Finance scrapped the entire auction, instead. As a result, in the secondary market the PIB yields came down by 40-50bps. Overall, the week concluded with the market gaining a mere 37 points, closing at 9,860 points, up 0.4 percent.