A mixed trend was witnessed on the Karachi share market during the outgoing week ended June 01, 2012 due to investors' cautious stance, analysts said. "The investor sentiments were driven by budget related news during the outgoing week", they added. The benchmark KSE-100 index after moving both sides finally closed at 13,876.97 points, down 48.09 points or 0.3 percent on week-on-week basis.
Trading activities also remained low as the average daily volumes at ready counter declined by 9.8 percent on week-on-week basis to 140.53 million shares as compared to previous week's average of 155.81 million shares.
Total market capitalisation reduced by Rs 10 billion on week-on-week basis to stand at Rs 3.552 trillion.
The foreigners took active interest in the market with buying witnessed during the early part of the week. However, foreigners ended the week with net selling of $0.01 million worth of shares.
The market opened on a positive note on Monday and the index increased by 106.45 points to close at 14,031.51 points with total volume of 181.329 million shares. This trend continued on Tuesday and the index gained another 40.34 points to close at 14,071.85 points with 160.177 million shares. However, the investors opted for selling on Wednesday and the index plunged by 200.09 points to close at 13,871.76 points with 129.271 million shares. The index lost another 85.14 points on Thursday to close at 13,786.62 points with 124.763 million shares. The index on Friday recovered 90.35 points and closed the week at 13,876.97 points with 107.090 million shares.
Bilal Qamar, an analyst at JS Global Capital said that the investor sentiments were driven by budget related news during the week. Furthermore, a news report regarding the hike in gas development surcharge kept investors interested in the Chemicals sectors, while a cut in FED on cements in the up coming budget caused a stir of activity in the construction and material sectors.
He said that the fertiliser sector came under the limelight during the week, as news flows suggested that a proposal was being sent in the budget to raise the gas development surcharge on the feedstock gas. Earlier in the week, news came in of the disapproval of such news by the Law Ministry, however, later during the week Minister for Petroleum, took notice of it and managed to convince the Law Ministry to approve the proposal.
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