KARACHI, Sept 4: Share market on Monday failed to extend the weekend rally in the absence of renewed buying from the leading financial institutions owing partly to political uncertainty and fears of law and order situation.

The profit-selling, which covered the entire blue chip counters, was however not that aggressive to cause major dents in the existing price structure and was well-absorbed at the dips.

The trading resumed on a higher note on early buying in some of the blue chips, but the mid-session selling at the inflated levels pushed them down.

Heating up of the political scenario in the backdrop of Nawab Akbar Bugti’s killing and fears of law and order situation appear to be chief inhibiting factors behind the market current volatility, says a leading floor broker.

“I don’t expect long-term investment buying at this stage from general investors until financial institutions provide the much-needed lead in abnormal conditions,” he adds.

Both the 30-share and 100-share indices after opening higher also followed the lead of the general market and fell by 72.88 points and 45.06 at 12,691.35 and 10,125.91 points respectively.

Analysts said investors were still confused about the two indices in the absence of proper guidance from the leading brokerage houses to their clients.

“Prospective investors are asking which one of the two indices fully reflects the future financial outlook of the market and where to invest,” they said, adding “physical activity in the coming sessions is expected to will show how and where to invest in the prevailing conditions”.

Some analysts said the new index was expected to significantly add to daily volumes after investors fully understood the mechanism of the two indices and their impact on the broader market.

Treet Corporation and Pakistan Services managed to finish higher by Rs10.35 and Rs18.50 followed by Millat Tractors, Attock Cement, Luck Cement, Javedan Cement, National Foods and Sanofi-Aventis, up by Rs3 to Rs10.

Dawood Hercules and Atlas Honda fell by Rs10 and 11.25. Other notable losers included National Refinery, Bolan Castings, EFU General, Indus Motors and IGI Insurance, which suffered fall ranging from Rs2.95 to Rs6.

Trading volume showed a modest rise at 180m shares from the weekend 151m shares but losers held a fair lead over the gainers at 147 to 114, with 26 shares holding on to the last levels.

National Bank came in for active buying and topped the list of actives, higher Rs2.50 at Rs228.50 on 23m shares followed by D.G. Khan Cement, up by Rs1.30 at Rs95.25 on 22m shares and OGDC, easy by Rs2 at Rs129.25 on 13m shares.

Pakistan Oilfields steady by 10 paisa at Rs347.10 on 11m shares, MCB, lower Rs2.05 at Rs222.25 on 9m shares, Pakistan Petroleum, off Rs2 at Rs241 on 8m shares and Bank Alfalah, up by 45 paisa at Rs39.30 on 6m shares.

Other actives included WorldCall Telecom, up by 65 paisa on 11m shares, Fauji Cement, higher by 75 paisa on 9m shares and Lucky Cement, higher by Rs4.55 on 8m shares.

FORWARD COUNTER: National Bank also came in for active support on the cleared list and rose by Rs3 at Rs230.50 on 5m shares, D.G. Khan Cement, up by Rs1.70 at Rs96.10 on 4m shares and Pakistan Oilfields, up by Rs2.55 at Rs350.45 on 3m shares.