Pakistans capital market closed second last week of the outgoing 2010 with an upbeat sentiment chiefly due to foreign investors constant interest in local equities and well-performing financial and banking sectors yielding anticipations of periodical payouts. The market opened the week ending Friday last with a positive note since the foreign inflow in portfolio investment made liquidity available for across the board trade in positive direction. Local margin hunters however snubbed the sentiment during the following session and the negative trend on Tuesday last corrected the market, though partially. Trend reversed to the gaining side but bearish resistance contained bulls to merely a quarter percentiles gain on Wednesday last. Profit taking again took its toll on Thursday last and the market fell by little over half a percentile of the indexed average on the predominant benchmark of the countrys mother bourse. Ebb and flow continued throughout the week and the market went again bullish on Friday last as the index bagged two-thirds percentile indicating the positive undertone of the trade. Pundits were of the view that the foreigners interest, lucrative performance of the corporate entities, and relative calm in Karachi law and order paved way for soaring trade. On the other side constant political uncertainty, precarious state of economy, and continuation of suicide bombing across the country were to deter the investment away. That is why perhaps the market could not go clearly bullish during the week under review despite positive undertone of the trade, as a majority of players were divergent in their investment decisions. The market ahead would certainly react to the key appointments in the Securities and Exchange Commission of Pakistan the apex regulator of the market as the government appointed four new commissioners including one chairman on Friday last. Newly appointed Chairman SECP Muhammad Ali Ghulam Muhammad, reportedly, was a former broker at the Karachi Stock Exchange. This clearly indicates that the government once again had failed to ensure that there should not be any conflict of interest in appointment of quasi-judicial positions in the corporate watchdog of the country. Experts have already pointed out that the new Chairman who remained active partner of more than one brokerage houses had a direct of conflict of interest in becoming top regulator. It is pertinent to mention here that the Finance Ministry earlier had proposed the name of Farrukh Khan for Chairmanship of the SECP. As Khan had only recently resigned from a brokerage house, the Prime Minister Secretariat had declined to appoint him as Chairman as recommended by the Finance Ministry. Rather than looking for some one else falling on the criteria of Commissioners appointment in the SECP, the Ministry has once again got a person having conflict of interest as Chairman of the corporate watchdog. That said, the governments much delayed decision to fill up long vacant Commissioner level vacancies in the corporate watchdog is a welcome sign. For over a couple of years the SECP remained without minimum required strength of Commissioners. Resultantly, the corporate law governance was compromised leaving the overall market regulations and business conduct astray.