KARACHI, March 5: Stocks on Monday resumed trading on an uncertain note as the maiden session under the Client Level Netting (CLN) regime witnessed a halt in bull market as leading investors kept to the sidelines apparently having an overview of its negative impact on their exposure limits. The 100-share index was off 234 points or 2.10 per cent at 10,899.71 points.

But some leading analysts attributed the fall to prevailing tension in Pakistan US relations over the Taliban issue and successive veiled threats to Pakistan “to do more”.

“The implementation of the CLN from March 5, has already taken its toll last week after the KSE 100-share index shed 500 points,” leading analyst Ashraf Zakria said ”the thaw in ties with the US appears to be a new element, which has crept into stock trading.”

No one could dispute the fact that the CLN regime will add to the share transaction costs of both the buyers and the sellers, he said adding but what worries brokers is fear that small investors may be eliminated from the share business.

The steep fall in the daily turnover figure at 117m shares reflects the developing situation on the share market and news from the political front could further aggravate the scenario.

All the leading base shares, notably National Bank, Pakistan Petroleum, fell around their lower locks, plunging the index to new year low.

“I don’t think the current run-up is overdone,” analyst Ahsan Mehanti predicts,” the market will be back on its bull trek after the current psychological depressants find their logical end.”

Another analyst Hasnain Asghar Ali said background news, notably from the external front are not positive, notably after unloading by some foreign investors, the activism being shown by the institutional traders could save the situation forestalling further market decline.

News of acquiring controlling shares, 93.4 percent of Prime Bank for Rs13.8 billion at Rs54 per share by ABN AMRO, however, did not stir much activity on the banking counter owing perhaps to other negative factors.

Minus signs dominated the list under the lead of IGI Insurance and Nestle Pakistan, lower by Rs12.90 and Rs20, United Bank, MCB, National Bank, Mirpurkhas Sugar, Attock Petroleum, PSO, Pakistan Petroleum, Pakistan Oilfields, Indus Motors, and Sanofi-Aventis, which suffered fall ranging from Rs6.00 to Rs9.

Bata Pakistan and wyeth Pakistan rose by Rs8.35 and Rs92.45 respectively. Other notable gainers included Habib Metropolitan Bank, Sapphire Fibres, Thal Industries, National Refinery, Engro Chemical, Berger Paints, and Colgate Pakistan, up by Rs3 to Rs5.Trading volume remained light at 116m shares as losers maintained a strong lead over the gainers at 222 to 75, with 31 shares holding on to the last levels.

OGDC topped the list of actives, off Rs2.70 at Rs115.30 on 14m shares followed by Hub-Power, lower Rs1.40 at Rs31 on 8m shares, D.G.Khan Cement, easy by one rupee at Rs82.50 on 7m shares, National Bank, sharply lower by Rs8.80 at Rs260 on 6m shares, PTCl, off Rs2.35 at Rs50.40, also on 6m shares and Pakistan Petroleum, off Rs7.25 at Rs246.25 on 5m shares.

Other actives included Kot Addu Power, up 40 paisa on 6m shares, Bank of Punjab, off Rs4 also on 6m shares, Fauji Fertiliser Bin Qasim, easy 50 paisa on 5m shares and Engro Chemical, higher by Rs3.30 at Rs180 on 4m shares.

FORWARD COUNTER: National Bank also remained under pressure on the cleared list and fell by Rs8.63 at Rs260.62 on 8m shares followed by MCB, off Rs7.50 at Rs287 on 7m shares, and OGDC lower Rs2.15 at Rs116.50 also on 6m shares.