Poor law and order situation and political rumours created panic in the Karachi share market during last week ended on March 15, 2008, with the result that KSE-100 index gained only 2.29 point closing at 15,087.47 from previous week's 15,085.18 after touching the high level of 15,171.42 points on March 12.
Overall, the market performance was mixed trend as on three days it witnessed bullish trend, while the remaining two days saw bearish trend. "Removal of duty by the UAE on the import of cement and increase in oil prices in the international market turned investor interest in cement and E&P sector", said Ahsan Mehanti an analyst at Shehzad Chamdia Securities.
The blast in the FIA office Lahore disturbed the market, yet investors' confidence improved on announcement of March 17 for National Assembly session, he added.
In banking sector Bank Alflah, MCB Bank, and National Bank, in cement sector Lucky Cement and D G Khan Cement, and in oil sector OGDC and Pak Oilfields were the star performers.
The KSE-30 index dipped by 111.65 points to close at 18,495.54 points from 18,607.19 points. Market capitalisation declined by Rs 25.201 billion to Rs 4.636 trillion as against the 4.661 trillion.
Trading was lower than previous week as average daily trading volume of ready market stood at 243 million shares as compared to 285 million shares a week earlier, and 1.215 billion shares were traded as against 1.294 billion shares traded a week earlier.
On Monday, the market opened on a positive note and the KSE-100 index hit 15,145.94 points intra day high. However, it could not sustain that level due to huge selling on the back of profit and in the evening market closed in the negative trend and the KSE-100 index lost 172.40 points to 14,912.78 points from 15,085.18 points.
On Tuesday the market showed positive trend and KSE-100 index gained 31 points to reached 14,943.78 points on the back of rise in the international oil prices and announcement of national and provincial assembly section's date.
On Wednesday, bullish trend was witnessed in the market and KSE-100 index reached the high level of 15171 points due to high institutional buying of the blue scrips and foreign investors investment in oil sector due to rising international oil prices.
The KSE-100 index opened in the green zone with positive 69.60 points and at the end of the day breaching 15,000 level closed at all time high level of 15171.42 points from 14,943.78 points with a gain of 227.64 points.
On Thursday several rumours including the resignation of President Musharraf created panic in the market and Karachi share market witnessed bearish trend and KSE-100 index closed at 15074.74 points with a loss of 96.68 points.
Karachi share market on the last working day witnessed mixed trading activity due to uncertainty over the March 17 national assembly session & nomination of Prime Minister, however KSE-100 index closed with a gain of some 13 points.
The KSE-100 Index opened in the green zone with positive 28.90 points and at the end of the day closed at 15087.47 points from 15,074.92 pints with a gain of 12.55 points.
Mehanti said that rumours on reinstatement of judges in agreement with Aiwan e Sadr and political parties, besides changes in government set-up has hurt the market, as investors believed that if President Musharaf resigned the economic policies would be changed. He said: "We are expecting during the current week market would be improved and perform well, if the negative incident could not happen".