OUR STAFF REPORTER LAHORE The bearish activity was witnessed across the board after the US President warned Pakistan of no tolerance for terrorists safe havens inside the country however the KSE-100 index closed at 12,464 level, up by 0.8 percent at the end of the outgoing week. Experts said that the most of the gains were contributed by the Nestle, which was up a significant 24 per cent. Average daily volumes strengthened by 16 per cent to 61 million shares with Engro concluding to be the volume leader, making up 10 per cent of the market. Sana Hanif, an expert, stated that the chemical sector stood as a leading out-performer, with Engro being a notable exception after reports of gas curtailment resurfaced over the weekend. The stock recovered marginally though post losing 8.8 per cent during first three trading sessions. Meanwhile, FFC and FFBL outperformed the market by 4.7 per cent and 0.3 per cent as investors expect another round of urea price hike. With regards to energy stocks, POL remained firm (up 3.6 per cent) on the back of improved production prospects from its Domail-II field which has entered the testing phase. PPL, despite announcement of a secondary offering, declined 0.3 per cent after its much hyped interim dividend of Rs5 per share came in below market expectations. From Monday to Thursday MTS investment stood at Rs358 million, with average rate standing at 17.33 per cent compared to 17.38 per cent last week. Ahsan Mehanti, a stock market expert at Arif Habib Investments, observed that strong valuations in blue chip scrips and recovery in global commodity and capital markets after Greece deal with EU and IMF failed to change the bearish sentiment at KSE. US Secretary of State remarks for slowdown in military aid unless the country takes steps against terrorism affected the investors trading appetite. As per reports, FFCs 50MW wind power project reached its financial close. Now with its financial close achieved, it will take another 16 months for the project to come online provided everything goes smooth. The total estimated project cost stands at $133.5m. Stock experts currently maintain 'Hold call on the FFC. As per the data released, tax collection figure reached Rs1.43trn till June 20, leaving the govt with an ambitious target of Rs158b for the remaining 10 days of the fiscal year. Further, C/A registered a deficit of $457m in May, trimming the cumulative surplus for July-May to $205m. Lastly, the IMF refused to hold talks with Pakistan on the basis of provisional numbers and awaits actual economic data for FY11 for post-budget review talks. Experts said that the equity market in FY10-11 has posted a return of 27 per cent so far, the average daily volumes and value have witnessed a significant dip of 40 per cent and 46 per cent, respectively. Similarly, IPOs another criteria to gauge markets depth, declined to only three in FY11 agaisnt eight offerings in FY10. A total of three offerings are being floated in FY11, as opposed to eight in FY10. Historically, FY04 and FY05 witnessed the highest offerings of 11 and 14, respectively. Cumulatively, a sum of Rs2.4bn is expected to be raised in FY11 vs. Rs7.0bn in FY10. An amount of Rs970m is expected to be raised through the book-building process and Rs1.1b from the general public while Rs290mn were pre-allocated to foreign investors. Amongst the issues this year, one each belonged to the steel, insurance and the power sector. The value-wise subscription of the offerings to the general public stood at 0.6x, as only Rs669m were raised against a target of Rs1.1b. This is significantly lower than last years average of 0.9x and average subscriptions of 4x during FY04-07. Application wise subscription too declined significantly to 0.02x compared to 0.05x of last years. An analyst Atif Zafar, pointed out that Pakgen Powers subscription details depict a gloomy picture for public offerings in the coming year, despite a 27 per cent return at the local bourse during FY11. However, the governments decision to increase tax credit to 15 per cent from 5 per cent for new listings in the recently announced budget and its intention to privatize public sector entities may result in increased offerings in FY12. Along side, Engro Corporation is also likely to list three of its subsidiaries in the coming year.