KARACHI, Aug 4: Stocks on Thursday reacted from the recent highs on active profit-selling at the inflated levels on all blue chip counters triggered by reports that the task force on stock market crash has released its report on the issue. The KSE 100-share index shed 37.09 points at 7,404.95. The government has set up a task force some months back to probe into the market crash in March, which pulled down the KSE 100-share index from 10,307 to 7,000 points, wiping out about Rs400 billion from the market capital.

Although details of the findings of the task force are not immediately available, there is a loud whispering in the rings that it contains “some big names who manipulated the market, taking away billions of rupees in the process”.

“A perfectly buoyant market aided by the end of double margin financing and some other positive developments on the badla front was again pushed into the minus column on selling by those who fear there could be fresh pruning after the report was out,” analysts said.

But some others said the halt was more psychological than real, as the market was expected to resume its upturn even from Friday as the developing situation on the COT front was fairly promising, which would end the current liquidity problem. However, the consolidation forces will not come into full force until an official announcement on the badla and margin financing issue is released by the SECP.

Meanwhile, the KSE has eliminated another market irritant of double margin financing, which in turn could significantly add to the liquidity position of investors and brokers. All the leading base shares, which rose sharply during the last two sessions, came in for active selling and led the market to decline, major losers among them being Javed Omer and Lakson Tobacco, off Rs11.25 and Rs11.45, respectively. They were followed by Indus Dyeing, Island Textiles, Yousuf Textiles, Thal, National Refinery, PNSC and AKD Securities, off Rs4 to Rs8.15.

Gainers were led by Shell Pakistan, which maintained cash dividend of 350 per cent plus bonus shares of 25 per cent, and Siemens Pakistan, rose by Rs29 and Rs31, respectively. EFU Life, Adamjee Insurance, Gatron Industries, Crescent Steel, Clariant Pakistan, Colgate Pakistan and Unilever Pakistan followed them, up Rs2 to Rs14.90. Trading volume fell to 244m shares from the previous 310m shares as losers held a modest lead over gainers at 147 to 137, with 36 shares holding on to the last levels.

PTCL came in for active selling and fell 55 paisa at Rs63.50 on 71m shares, followed by Fauji Fertilizer Bin Qasim, up 75 paisa at Rs31.25 on 43m shares, OGDC, lower one rupee at Rs105.75 on 24m shares, DG Khan Cement, easy 85 paisa at Rs57.00 on 13m shares, National Bank, off 95 paisa at Rs107.15 on 10m shares, PSO, firm by 25 paisa at Rs377.25 on 8m shares and Pakistan Petroleum, off Rs3.50 at Rs177.75 on 7m shares. Other actives were led by Bank of Punjab, easy five paisa on 9m shares, Bank Alfalah, up Rs1.55 on 7m shares and Nishat Mills, firm 60 paisa on 7m shares.

FORWARD COUNTER: PTCL also came in for active selling on this counter and fell by 30 paisa at Rs64.20 on 26m shares, followed by Fauji Fertilizer Bin Qasim, up 75 paisa at Rs31.60 on 18m shares and OGDC, off Rs1.05 at Rs106.50 on 13m shares.