KARACHI, July 8: Stocks resumed trading on Monday on a higher note but later turned mixed as follow-up support turned shy even on the blue chip chip counters, although rumours of cut in the discount rate averted larger fall. The KSE index showed a fractional decline of 0.96 point, pushing it slightly below the barrier of 1,800 points.

“I don’t think investors have some reservations about the unfolding political scenario as they are too shy to hold the index above the coveted level of 1,800 point,” says a leading stock analyst,adding “the important factor appears to be inconsistency in the institutional support.”

It is interesting to note that bears are out to contain it after the index breaches through the psychological barrier of 1,800 points and that is what is happening during the post-budget sessions, he says.

The broader market, however, remained uppishly inclined as most of the second-liners managed to finish with fresh modest gains on covering purchases by some genuine investors followed by predictions of sustained bull-run in the coming weeks.

The rumours of reduction in discount rates should have boosted the underlying sentiment but heavy selling in the bank shares, notably National Bank worked against the market, analysts said.

The rumour seems to have been given credence in the backdrop of the finance minister’s recent statement hinting at the further cut in the discount rate.

After opening higher, the KSE 100-share index finished fractionally down by 0.96 points at 1,799.52 as compared to 1,800.48 at the weekend session as some of the leading base shares finished reacted.

Floor brokers said threat of war from across the borders were pouring in daily but they were now taken as market factors as investors were now following the local background news rather than the external ones.

However, political discontent is there as most of the leading parties are opposing the government’s constitutional package, which leaders claim has caused uncertainty about the holding of national elections early in October.

Some of the leading fertilizer shares came in for fresh support on reports of increase in selling prices, while market leaders such as PTCL and Hub-Power also performed well.

Prominent gainers were led by Abbott Lab, Ghani Glass, Nafees Cotton, Mehmood Textiles, and Pakistan Oilfields, rising by Rs1.40 to Rs4.50. Shell Pakistan, Gillette Pakistan, BOC Pakistan, Abbott Lab, Millat Tractors, Ghani Glass, Nafees Cotton, PILCORP, and Mahmood Textiles followed them, rising by one rupee to Rs3.

Losers were led by Faisal Spinning, EFU Life Insurance, Javed Omer, Rafhan Maize Products, and Lever Brothers, off Rs1.20 to Rs13.

Trading volume rose to 67m shares from the previous 50m shares as gainers held a modest lead over the losers at 126 to 122, with 56 shares holding on to the last levels.

Hub-Power again led the list of most actives, firm by five paisa at Rs24.10 on 21m shares followed by PTCL, unchanged at Rs17.55 on 10m shares, National Bank, off 65 paisa at Rs21 on 6m shares, PSO, lower 30 paisa at Rs140.95 on 4m shares and Telecard, higher 30 paisa at Rs12.85 also on 4m shares.

Other actives were led by KESC, lower 15 paisa on 3.315m shares, Engro Chemical, off one rupee on 3.140m shares, Southern Electric, up 25 paisa on 2.158m shares, FFC-Jordan Fertilizer, easy five paisa on 1.886m shares and WorldCall, firm by 10 paisa on 1.558m shares.

FUTURE CONTRACTS: Trading activity on the forward counter was relatively slow as investors mostly played safe for no apparent bearish reasons. However, Hub-Power came in for modest support and was marked up by five paisa at Rs24.20 on 3.356m shares followed by PSO, easy 30 paisa at Rs141.70 on 1.383m shares and PTCL, lower five paisa at Rs17.60 on 1.284m shares. Others were traded modestly.