KARACHI, Aug 11: Stock market on Thursday lacked normal trading interest as leading investors seemed to be more active on the selling side rather than buying at the dips in the absence of new positive guiding factors.

The KSE reaction to the official task force findings, denying most of the charges including against some of the leading brokers without proof may aggravate the already tensed relations between the contenders in the coming sessions, analysts fear adding that it could add significantly to existing uncertainty on the COT-related issues.

The KSE 100-share index breached through the psychological barrier of 7,000 points as leading base shares posted fresh sharp fall under the lead of oil shares followed by renewed selling by some leading punters.

It finished the session at 6,970.59 points, off 93.70 points but slightly above the day’s lowest bid. The highest was briefly touched at 7,091.49 earlier in the session.

There may not be free-for-all after the breach of the barrier, but it could fall further to its sustainable level of 6,500 or slightly below it, dealers said.

Most of the leading oil shares notably PSO, Pakistan Oilfields, OGDC, and Pakistan Petroleum had declined by 25 to 50 per cent during the recent sell-off having a negative impact on the other counters, notably overvalued bank shares under the lead of MCB and National Bank.

Echoes of negative fallout of the rumoured default of a Lahore Stock Exchange broker had a role in the market’s continued fall as a combination of bad news came at a time when investors were grappling with other irritants.

“The market appears to be the victim of lack of buying support from any quarter at the falling prices”, brokers said adding “steep persistent fall in the share values of high profile blue chips reflects most of the leading players are inclined to stay inliquid until their demand are met”.

But some others said leading brokers had taken a position against the SECP thinking on the COT and margin financing and the standoff was expected to continue until their major demands were met.

Meanwhile, the KSE board of directors, which met on Wednesday, had denied most of the findings of the Task Force constituted by the SECP to probe the market crash of last March and announced some steps to restore sanity to stock trading.

The steps it intend to introduce at its own level include, among others, introduction of free float index, to replace the circuit breakers with another product to forestall speculative fall or rise in a particular shares and verification of pre-opening trades.

Minus signs again dominated the list under the lead of Treet Corporation and Arif Habib Securities, which suffered fresh fall of Rs14.90 and Rs16.55. Other prominent losers included Shell Pakistan, United Sugar, Clover Pakistan, National Refinery, Mari Gas, Javed Omer and EFU General, which fell by Rs4.4.90 to Rs8.70.

But on the other hand Haroon Oils and Unilever Pakistan managed to finish higher by Rs2.75 and Rs25 followed by Nishat Chunnian, Kohat Cement, Crescent Textiles, Callmate Telips, Ismail Industries, and Sana Industries, up by Rs1.50 to Rs2.05.

Trading volume shrank to a modest total of 110m shares as leading buyers kept to the sidelines as compared to 116m shares a day earlier as losers again maintained a strong lead over the gainers at 200 to 64, with 29 shares holing on to the last levels.

PTCL was again actively traded, off 70 paisa at Rs60.70 on 30m shares followed by OGDC, lower 95 paisa at Rs98.55 on 15m shares, Pakistan Petroleum, off Rs4.55 at Rs152.55 on 11m shares, National Bank, easy by Rs1.80 at Rs101.55 on 10m shares, MCB, lower Rs4.15 at Rs81.05 on 8m shares, Pakistan Oilfields, lower Rs4 at Rs297 on 4m shares and PSO, off Rs4 at Rs356.

Other actives were led by Fauji Fertilizer Bin Qasim, lower 25 paisa on 4m shares, Hub-Power, steady by five paisa on 2m shares and D.G.Khan Cement, off Rs1.25 also on 2m shares.

FORWARD COUNTER: Pakistan Petroleum remained under pressure and shed another Rs4.25 at Rs153.60 on 25m shares followed by PTCL, lower 60 paisa at Rs60.65 on 18m shares, OGDC, easy 55 paisa at Rs60.65 on 16m shares, MCB, lower Rs4.20 at Rs81.35 on 9m shares and PSO, off Rs4.45 at Rs357.50 on 6m shares.