KARACHI - Karachi Stock Exchange (KSE) witnessed a lustreless performance during the week, as the volumes were at 10 and a half year low, falling to a grim of 5.3 million shares on Friday versus 29.7 million shares on the same day a week earlier, on June 27, reflecting a sharp decline of 82 per cent or 24.35mn shares on week on week basis. Average daily volumes this week hit a 11-year low of 17.7m shares, comparing 149.4m shares recorded last week, showing a fall of massive 88 per cent. The benchmark KSE-100 index fell by 3.2 percent to 392 points on week on week basis, thanks to the SECP's amendments in trading regulations last week that have been unable to jack up the share market but managed to dampen the pace of decline in the index. Free float KSE-30 index dived by 4.2 per cent to 607 points and overall capitalisation declined by Rs195 billion WoW. Weak economic fundamentals, prolonged political uncertainty and the worsening law and order situation in the Northern Areas contributed in aggravating the already bearish investor sentiment.. Most of the stocks reached their lower circuits in the early hours of the trading session stopping investors from participating in trading activity, analysts said. "The lower cap of 1 per cent has stopped the investors from exit, which has prompted further stagnating activity," analysts added. Oil prices continued their uptrend and crossed US$145/barrel. Inflation in emerging markets already at record levels is expected to rise further amid no respite in oil price hike. In anticipation of further monetary tightening and hence reduced corporate profits, selling pressure was witnessed in all Asian Emerging Markets. Similarly, net foreign selling of US$5.8mn was witnessed in Pakistan Market during the first 4 days of week. Major selling was seen in the banking sector which fell by 4 per cent WoW, analysts said. CFS investment decreased by 4.9 percent WoW, Rs1.58bn to close at Rs30.67bn on Friday as investors refrained from taking fresh positions while the market continued its downward slide. However, due to relatively slightly better liquidity positions, a fall of 583bps WoW was witnessed in the CFS rates which ended the week at 14.5 per cent. The top 5-scrips by CFS investment were AHSL, POL, NBP, AICL, and DGKC, which cumulatively accounted for 46pc of the total CFS investment during the week. The combined open interest at the futures counter for July stood at Rs8.42bn, a WoW increase of 2.8 per cent to Rs228.8mn from Rs8.19bn a week earlier. Futures spread increased by a whopping 1,938bps, from 21.97 per cent to 41.34 per cent as the difference between prevailing and future prices widened. Average future volumes fell by 95 per cent as investor participation remained low. The top-5 scrips by July futures investment were JSCL, MCB, ENGRO, AHSL and ANL, whose total contribution accounted for 47pc of the total outstanding open interest amount. There is widespread gloom and doom about the behaviour of equity market in the coming weeks but analysts expect that a review on the prevailing circuit mechanism is carried out in order to provide investors an exit may raise the confidence of investors.