Pessimism prevails as week ends with successive losses (12072008)

LEADER REPORT
KARACHI: The second consecutive week ends with similar inactive performance on Friday. The session started with the hopes of institutional support but soon the positive perceptions ended and market, after its opening, approached its lower band and closed down by 77 points at 11,695 points. The volume momentum continued its sluggish pace as mere 21 million shares were traded.
Even though the regulators have formulated the exit strategy plan by proposing the formation of Equity Market Opportunity Fund, the prevention of exit remained the disturbing issue in the market. EMOF will rescue the market by investing in CFS scrips, taking the positions at 20% discount of 6 months weighted average price, while it will take some time for the fund to enter the market.
The flight of foreign investment continued, as $3 million have been wiped out of market on Thursday from foreign investors' portfolio investment.
The Rupee showed a healthy performance as it closed at 70 against USD. All sectors followed the bearish trend and majority scrips closed hitting their lower circuits. The volume leaders were NIB, FCCL and SSGC, respectively.
The previous inactive performance is expected to continue until the selling is absorbed and investors are provided with exit mechanism. The shattered confidence of the investors is the barrier between the positive movements. Investors are recommended to adopt wait and see strategy till the end of the bearish spell, while they can take fundamentally backed positions with a cautious stance.