KSE Sheds 1pc in Week on NRO

KARACHI: Dull trading activities witnessed at the Karachi Stock Exchange (KSE) last week which shed over 1 per cent with low investor participation who stayed reluctant to take positions ahead of Eid holidays and uncertain political situation over NRO issue.

The benchmark KSE 100-Index declined by 100 points or 1.08 per cent to close at 9,206 points, KSE 30-Index dropped 119 points or 1.22 per cent to close at 9,706 points while KSE All Share Index lost 64 points or 0.98 per cent to close at 6,529 points.

The week started on a bearish note where on the first day of the week on Monday index shed 84 points due to political turmoil in the country over National Reconciliation Ordinance (NRO) while uncertainty regarding reduction in interest rates also negatively affected the investor sentiments and they preferred to take an exit from the market with volumes reducing to near 5-month low.

However, market showed dull trading activities during the remaining three days of the week as investors opted for staying out of the market proceedings owing to a long weekend ahead. Reduction in interest rates too didn't see any major reaction as market had already discounted a 50bps reduction. Therefore on Tuesday index gained 11 points, on Wednesday it lost 29 points and on Thursday it closed with just 1 point up into the green zone. Index at one stage during intraday trading Thursday touched its lowest level of the day of 9,168 points.

Investor participation was much lower throughout the week as near 318 million shares were traded which are 473 million shares less as compared to a turnover of 791 million shares a week earlier. Average daily volumes reached 79 million shares per day which is near 79 million shares less as compared to a an average daily turnover of 158 million shares a week earlier.