KSE crawls through a lustre-less week

Experts think market would remain dull until liquidity, leverage product are made available
KARACHI: Karachi Stock Exchange (KSE) went through a lacklustre week as
Its benchmark KSE 100-index closed the week at a level of 7,039 points - a minor decrease of 16 points.
News regarding taxation on exports, no major incentive for the stock market in the budget, fears about capital value tax (CVT) imposition and profit-taking caused the market shed some points but hopes of leverage products, expectations of cut in T-bill yield and interest rates helped the market recover losses.
"Unfavourable budget for the stock market and budget related uncertainties kept the market under pressure while fears that CVT would be reimposed with double rate further weakened the sentiments," a market expert told The Financial Daily when asked about the market performance throughout the week that ended on Friday.
He added that market remained lacklustre as institutions didn't take part in market activities ahead of financial year closing in June coupled with foreign selling in specific stocks. Hopes of reduction in interest rates and early launch of leverage product did give some support to the market, he added.
Market started the week in a depressing way, as the index lost 103 points on Monday on selling pressure mainly due to no major announcement for the stock market in the budget and taxation on exports. Negativity continued the next day too as despite foreign buying in the market, index fell by 80 points mainly due taxation on exports while volumes reduced to a 3-month low during the day.
Bulls took an impressive comeback on Wednesday as the key index grew by near 3 per cent (202 points) mainly on expectation of decline in T-bill yield, hopes of removal of tax on exports and likely reduction in discount rates in July.
Profit-taking was witnessed during the last two days of the week as index lost 24 and 12 points respectively on Thursday and Friday.
Index touched the highest level of 7,142 points and lowest level of 6,847 points during the week.
KSE 30-index dropped 70 points to close at 7,448 points and KSE all share index lost 13 points to close at 5,047 points.
Out of total 357 active issues, 202 declined and 135 advanced while 20 issues remained unchanged.
Investors' participation remained dull almost throughout the week as 508 million shares exchanged hands during the period which are 125 million shares low as compared to a turnover of 633 million shares a week earlier.
Experts think that market would remain dull until liquidity is made available and leverage product is launched. They say introduction of new leverage product and decline in the key discount rates would be the trigger for market in the coming days.