"The Karachi stock market witnessed a consolidation phase during the week, as investors adopted a cautious approach ahead of the year-end," analysts said. While, news relating to commissioning of new refinery by Byco Petroleum, subsidiary listing of TRG on AIM LSE, expectation of Etisalat and the Coalition Support Fund payments invited selective buying in stocks, they added.
Week-on-week basis, overall market capitalisation increased by Rs14.96 billion to Rs4,232.51 billion from Rs4,217.55 billion a week ago. Some improvement was witnessed on trading side, but it was not impressive and with an increase of 2.1 percent, the average daily trading volume at the ready counter stood at 138.33 million against 135.53 million a week ago. Week-on-week basis, the average daily trading value declined by 3.9 percent to Rs3.5 billion from Rs3.64 billion.
Naveed Tehsin, an analysts at JS, said that investors at the local bourse remained cautious throughout the week.
"Telecommunication and textile stocks were under the limelight on account of 3G auction process and International Clearing House (ICH) case," he said. On the macro front, forex reserves declined to $13.21 billion, he said.
During the last week, sentiments at the local bourse were negative on Monday and Friday because of selling pressure and investors'' profit-taking attitude. A bullish trend was witnessed during the remaining three days. On Monday, Karachi share market ended lower and uncertainty in regional and international equities ahead of long holidays and increasing volatility on the domestic political front kept market participants on the back foot.
On the first trading day of the week, the benchmark KSE-100 index lost 44.07 points to close at 16,801 points, down from 16,845.09 points.
On Tuesday, the Karachi share market closed higher as investors'' interest perked up in selected stocks and the benchmark KSE-100 index gained 57.66 points to close at 16,858 points, up from 16,801 points.
On Wednesday, the Karachi Stock Exchange witnessed a positive trend on expectations of the release of $600 million of US Coalition Support Fund and with a slight increase of 11.15 points, the benchmark KSE-100 index closed at 16,869.83 points.
The Karachi equity market continue to post bullish trend on the fourth trading day. For the first time, the benchmark KSE index closed above 16,900 points level.
On Thursday, KSE-100 index gained 38.19 points to close at 16,908.02.
The Karachi Stock market on Friday closed lower amid institutional profit-taking in overbought scrips. The benchmark KSE-100 index lost 42.68 points to close at 16,865.34 points.
On the last trading day of the week, market opened in the green zone. During the first session, the index gained 59 points to reach a new peak level of 16,967.28 points. However, market could not sustain this level and ended in a bearish trend.
"A cut in policy rate in line with market expectations failed to provide impetus, while falling rupee became a major cause for concern for investors," said Samar Iqbal, an equity dealer at Topline. TRG, BYCO petroleum and small cap cement stocks remained in limelight, while profit-taking was seen in Engro Corp, as no major decision was taken in the ECC meeting for restoration of gas to the fertiliser sector, she added.
On contrary, investors remained bullish in FFC and FFBL as fertiliser off-take increased for the month of December, she mentioned.
Going forward, she said, futures roll-over and less working days along the year-end was expected to keep the local bourse in a range-bound territory.