KARACHI, Dec 10: Shares at the Karachi Stock market closed flat in the shortened three-session week ended on Friday.

The KSE-100 index closed at 11,465 points, showing gain of 92 points or 0.81 per cent.

The noticeable feature of the three day (Wednesday, Thursday, Friday) outgoing week was a collective outflow of foreign portfolio investment amounting to $4.8 million, showing larger overseas sell off compared to the earlier week`s $2.33 million. But for all that, the Karachi Stock market still stood out as best performing market in the region as all other regional markets suffered a plunge, the heaviest fall in India market by 3.8 per cent, fol-lowed by Taiwan 3.5 per cent and Korea 2.2 per cent.

As a delegation representing stakeholders in the Pakistan`s capital market heads for Mumbai to attend the South Asian Federation of Exchanges conference between Dec 12 and 15, there could be some furore in the market next week, depending on the outcome.

During the outgoing week, the KSE market capitalisation rose to Rs2,982 billion, from Rs2,961 billion, but in terms of dollars it fell back to 33.47 billion from 33.79 billion on account of rupee depreciation. The US dollar has touched its peak level against Pak Rupee and is trading at Rs89.1 (Interbank rate). This is largely attributable to strengthening of dollar against major global currencies, while decline inPakistan`s foreign exchange reserves to $16.68 (from $16.88bn) also pressured the Pak Rupee.

`Three trading days saw fertilisers dominate proceedings,` says analyst Yawar UZ Zaman at stock brokerage firm, InvestCap.

He noted that the average traded volumes at the market went up by 22 per cent over the earlier week to 45 million shares (owing to low base effect of previous week).

Average traded value increased by 24 per cent over the past week to stand at $31 million.

Naveed Tehsin, analyst at JS Global, observed that investors at the local bourse were nervous throughout the week.

Issues related to minimum paid-up capital requirement for brokerage houses, Capital Gains Tax (CGT) collection rulesand the local political uncertainty affected market sentiments.

Gas related issues pertaining to the fertiliser sector also kept the investors on the sidelines.

Most floor traders said that the market was held back by the political and regulatory issues, which increased uncertainty.

Analysts said that the the fluid political situation also unveiled a new chapter as the President was flown out of the country for health reasons with some speculative reports hinting that a political reshuffling may be on the cards.

The SBP Governor also shed light on the recent weakness in the Pak rupee, attributing its losses to a large $700 million oil import payment that was made recently.

On the macro front, external accountdata arrived late on Friday showing a 27 per cent jump over the earlier week, in trade deficit to $2.7 billion in November.

Among stocks, Packages Limited, NIB Bank, Pace (Pak) Ltd, Al-Ghazi Tractors and Shifa International Hospitals Ltd were the major gainers while Engro Corporation, Jahangir Siddiqui & Co, Silkbank Limited, Tri-Pack Films and Dawood Hercules were major losers.

Analysts said that the steady outflow in foreign portfolio in the coming weeks could determine the market direction given that domestic institutional interest was largely absent.

However, heading towards the end of the calendar year, stock specific activity may be seen in anticipation of corporate results and cash payouts.