Index up by 36.42 points

Local investors'' interest, on dips, on Friday supported the KSE-100 index during the week ended on October 29, 2011, to close in positive at 11,561.67 points, up 36.42 points. The market witnessed bearish trend during the first three trading sessions of the week mainly due to foreign selling. Net foreign outflows amounted to $7.8 million as compared to last week''s $6.9 million.
Trading at the ready counter remained low and the average daily volume declined to 75.25 million shares, by 12.6 percent, as compared to previous week''s of 86.11 million shares.
Market capitalisation increased by Rs 3 billion to Rs 3.021 trillion.
It was a four-day week as the market remained closed on Monday due to public holiday.
On Tuesday, the market opened under pressure and the index lost 7.96 points to close at 11,517.29 points with volume of 69.225 million shares.
On Wednesday, the market witnessed heavy selling and the index declined by 130.07 points to close at 11,387.22 points with 80.940 million shares.
This trend continued on Thursday and the index lost 103.73 points to close at 11,283.49 points with 69.758 million shares.
On Friday, local investors and institutions took fresh positions, on dips. That supported the index to register healthy gain of 278.18 points to close the week at 11,561.67 points with 81.083 million shares.
Yawar Uz Zaman, an analyst at InvestCap said that foreign investors continued sell-off during the week, prompting locals to follow suit. "Despite buoyant result season posted by the sector big giants (OGDC, FFB, LUCK, DGKC and others) buying activities remained quiet and investors were concerned to book profits. However, recovery was restored in the last trading session (on account of solid earnings by OGDC with attractive price levels overall) where index gained 278 points and off-set the aggregate weekly loss of 242 points", he said.
He said that the major reasons behind these activities were the prevailing gas shortage for the fertiliser sector. Furthermore, the rumours regarding CCP to take action against increase in Urea prices also spoiled investor''s interest.
Furqan Ayub at JS Global Capital said that the strained US-Pak relations coupled with the hawkish attitude of the opposition parties had initially overshadowed the healthy corporate results and positive sector news flow as investors booked profits throughout the week. However, attractive valuations finally lured investors on the last trading session of the week.
In comparison to the regional markets, the local bourse underperformed by 4.9 percent.