The Karachi share market during last week ended on July 29 witnessed range bound activity due to uncertainty on political front and law and order situation in the country.
KSE-100 index was up by 278.71 points, closing at 13,630.50 points against 13,351.79 of previous week, while KSE-30 index surged by 416.87 points, rising to 16,491.45 points from previous week''s 16,074.58 points level.
Average daily volume of ready market declined by around 16 percent to 285 million shares against from 340 million shares of previous week. Turnover average on futures counter rose to 81 million shares against 73 million shares. Market capitalisation increased by Rs 81 billion to Rs 4 trillion from 3.919 trillion. Investment in Special Convertible Rupee Accounts (SCRAs) stood at $98 million on July 26.
On Monday, the start of the market was positive and invited fresh buying on the back of increase in oil prices in the international market and announcement of investor-friendly petroleum policy. The KSE-100 index registered 308.57 points rise and closed at 13,660.36 points level, while KSE-30 index gained 404.68 points to close at 16,479.26 points.
On Tuesday, the market started on a positive note but could not sustain the rise due to decline in oil prices in international market. The KSE-100 index lost 107.46 points and closed at 13,552.90 points, while the KSE-30 index declined by 210.76 points to close at 16,268.50 points.
On Wednesday, the market witnessed a volatile session with the KSE-100 index oscillating between 13,614.82 points intra-day high and 13,423.49 points low. The KSE-100 index closed at 13,595.20 points level, up by 42.30 points, while the KSE-30 index surged by 131.21 points to close at 16,399.71 points level.
On Thursday, investors'' cautious stance continued, and the KSE-100 index, after touching 13,813.84 points intra-day high closed at 13,683.37 points, with a net gain of 88.17 points. The KSE-30 index surged by 139.14 points to close at 16,538.85 points level.
On Friday, the market witnessed panic selling due to law and order situation in Islamabad and other parts of the country. The KSE-100 index closed at 13,630.50 points level, down by 52.87 points, while the KSE-30 index lost 47.40 points to close at 16,491.45 points level.
Haris Dagia, analyst at JS Global Capital Limited, said that effects of political uncertainty stayed in the market during the week. News regarding possible US attacks on tribal areas of Pakistan made investors cautious and kept them in depressed mood.
Muhammad Ali at Invest Capital & Securities Limited said that on weekly basis, the top gainer scrips were from Cable & Electrical Goods, Refinery and Insurance sectors, which showed increase of around 7 percent, 5 percent and 5 percent respectively. The scrips performing the least were from Modaraba, Tobacco and Food & Personal Care Product sectors, posting decrease of around 3 percent, 2 percent and 2 percent respectively. The heavyweights like Banking, Cement, E&P and Fertiliser sectors showed a change of around 4 percent, 1 percent, 0.5 percent and 0.3 percent respectively.
Jawad Haleem at Atlas Capital Markets said that the market remained volatile during the week and this volatility emanated from possibilities of foreign investment being ploughed out of the market. Furthermore, being the last week for the July Futures Contracts also triggered some selling pressure. Prevailing law and order situation and bomb blasts in the different parts of the country was another reason, which created panic selling during the week.