May 24, 2006	Wednesday	Rabi-us-Sani 25, 1427

KARACHI, May 23: Trading volume on the stock market on Tuesday fell to a year’s low level of 123m shares as leading investors and institutional traders kept to the sidelines awaiting apparently some positive budgetary leaks to rope in prospective buyers again. The Index showed a fractional rise of 2.03 points at 10,932.58 points.

Steep decline in a daily turnover signals investors’ reluctance to go by the conflicting rumours about the new taxes adding to their budget worries. That is perhaps why attractively lower levels seem to have no relevance to changing investor mood and pre-budget lull.

Trading on Tuesday resumed on an insipid note as investors played on both sides of the fence without taking positions on any of the counters, although current lower levels reached by most of the leading shares, ensure higher capital gains.

The market’s terribly volatile performance was also well-reflected in the erratic movements of the KSE 100-share index, which finished with a fractional rise of 2.03 points after having touched the session’s low and high at 10,886.92 and 10,965.47 points.

Trading volume fell to two year’s low of 123m shares as both institutional traders and bargain-hunters just marked the time and ignored the blue chips at the falling prices.

Barring OGDC, Pakistan Oilfields and some others, which managed to finish higher, other pivotals, including National Bank, MCB, D.G. Khan Cement, Lucky Cement and Pakistan Petroleum reacted from the overnight highs on active profit-selling.

Floor brokers said investors should have been back on the market followed by some positive budgetary leaks, notably three per cent cut in corporate tax and reduction in the General Sales Tax from 15 to 10 per cent but they were carried away by series of negative rumours.

No one among the leading investors was inclined to positive side of the stock market reforms including new mode of financing, which will replace both existing CFS and badla. According to latest reports limit of financing is expected to increase well above the current Rs25 billion.

“The current lull in the stock trading could well prove a prelude of a big storm,” some analysts said and “warned investors to play safe as budget related rumours continue to take their toll”.

“It could be the belated negative reaction to the recent turmoil in the Indian bourse, which has fallen by 20 per cent during the last couple of sessions”.

Trading volume fell to 123m shares from the previous 236m shares as losers again held a strong lead over the gainers at 186 to 128, with 37 shares holding on to the last levels.

Minus signs dominated the list under the lead of Lakson Tobacco and Shell Gas, off Rs7 and Rs13, followed by National Refinery, Honda Atlas, Gillette Pakistan and Treet Corporation, off Rs4 to Rs5, while some others fell fractionally lower.

IGI Insurance and Nestle Pakistan rose by Rs15 and Rs52 being among the leading gainers. Other prominent gainers included Haroon Oils, Security Papers, Pakistan Engineering, National Foods, Zulfiquar Industries, Ferozsons Lab, Artistic Denim, Jahangir Siddiqui & Co. and Grays of Cambridge, which posted gains ranging from Rs4 to Rs10.45.

OGDC was actively traded, up by Rs1.65 at Rs148.65 on 21m shares followed by National Bank, off Rs3.90 at Rs248.55 on 13m shares, MCB, lower Rs4 at Rs239.50 on 13m shares, D.G.Khan Cement, easy Rs1.45 at Rs111 on 10m shares, PTCL, lower 10 paisa at Rs51.05 on 7m shares, Lucky Cement, off Rs1.80 at Rs116.25 on 6m shares and Pakistan Petroleum, lower Re1 at Rs247.75 on 5m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, up by 55 paisa on 5m shares, Pakistan Oilfields, higher by Rs1.30 on 4m shares and Al-Abbas Cement, steady 30 paisa on 3m shares.

FORWARD COUNTER: OGDC was also actively traded on the cleared list and was marked up by Rs1.55 at Rs149 on 8m shares followed by PTCL, easy 15 paisa at Rs51.10 on 6m shares and National Bank, off Rs3.70 at Rs249 on 5m shares.

MCB also came in for active selling and fell by Rs3 at Rs240 on 5m shares and PTCL June settlement, lower 20 paisa at Rs49 on 4m shares.

DEFAULTER COS: Active trading was witnessed on this counter as some of the shares attracted good support and rose under the lead of Pangrio Sugar, up by 80 paisa at Rs6.50 on 0.526m shares followed by Crescent Standard Bank, lower five paisa at Rs4.55 on 0.404m shares.

Indus Polyester followed them, up by 95 paisa at Rs6.70 on 0.217m shares and Quice Foods, firm by 20 paisa at Rs4 on 0.101m shares. Some others were also actively traded on the higher side.

BOARD MEETINGS: Al-Asif Sugar, Bawany Sugar, on May 27, Khalid Siraj Textiles, Crescent Sugar, United Sugar, JWD Sugar and Tandlianwala Sugar on May 29.