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WEEKLY REVIEW: KSE witnesses dull trading week, index closes 5 points up

KARACHI: The Karachi stock market witnessed dull trading activities during the week in the wake of unending fears of terror activities in the country, which continued to dampen market proceedings, analysts said on Saturday

The Karachi Stock Exchange (KSE) 100-share index gained a meagre 5.33 points to close at 9,156.18 points as compared to 9,150.85 points of the previous week.

Analysts said that during the week a massive bomb blast in Peshawar, which claimed scores of precious lives dampened investor sentiment as a result selling pressure was observed during most of the trading days.

The turnover was recorded at 179.13 million shares as compared with 195.04 million shares of the previous week, reflecting a decline of 8.15 percent.

“Despite strong corporate results, security concerns continued to dampen market sentiment in the outgoing week,” said analyst at JS Research Mustafa Bilwani. “Though foreigners returned as net buyers, local mutual funds remained the major sellers on security concerns.”

The outgoing week saw no let-up in the security situation, which continued to cast a shadow over the trading activities. Blast in Peshawar on Wednesday in particular dampened investor mood as the market fell by 2 percent in the last three days of the week.

However, selective buying was witnessed in a few of the major stocks. AICL and ABL in particular posted handsome gains of 19.6 percent and 15.3 percent, respectively on strong results. Among other results, DG Khan Cement, Lucky Cement, HBL, AKBL posted better than expected earnings while results of OGDC, Hubco, PTC and NML were in line with market expectations.

Foreigner’s bought shares worth $24.8 million and sold shares worth $15 million, resulting in net buying of $9.8 million. In contrast, local mutual funds were net sellers of shares valuing $13.9 million, hence outscoring the positive flow from foreigners.

“A bit of buying was witnessed as foreign inflows returned to the market,” said analyst at Shahzad Chamdia Sec Ahsan Mehanti. “However, investors remained concerned over economic, security conditions in the country.” staff report

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