KARACHI, Nov 25: The end to a stalemate at the Karachi Stock Exchange was not in sight as the KSE 100-share index remained glued to the old level of 9,187.10 points on Tuesday, with substantially low volume and fewer shares coming up for trading.

The week had started with a dismal note on Monday and the lack of investor interest continued into the second day on Tuesday. The market capitalisation based index of 30-share also stood pegged at the old level of 9,981.93 points, while the KSE-All share index posted a minor increase of 0.37 points to 6,641.59 points.

Traders said that the market was unlikely to burst into activity until the promised market stabilisation funds of Rs20 billion were injected into the system so as to enable market’s ‘soft landing’. Liquidity issue was being debated all around and investors were beginning to wonder when that would be settled as no positive news was emanating from any responsible quarter.

Only $0.08 million worth of shares changed hands in the system during the day. Analyst at Elixir Securities, Sara Shahid observed that the IMF announcement of approval of $7.6bn funding did provide a breather to the balance of payments crisis and depleting reserves, but contained nothing exciting for the capital markets.

“This funding is expected to go a long way in helping to stabilise the shaky economic situation”, said the analyst, but pointed out that the IMF had cautioned the government to avoid using public funds to bailout stock markets.

The analyst stated that with IMF funding now in the system, the government would find it challenging to take actions against IMF conditions no matter how unpopular the outcome may be since nonconformity will jeopardise expected future tranches. The analyst concluded: “Thus, the market support fund and removal of floor both remain undecided for now”.

Most analysts said that they hoped that the ‘floor’ would be removed and normal business commence at the KSE after Eidul Azha. The apex regulator was reported to have promised the provision of stabilisation funds “as soon as possible”, which analysts thought was the ray of hope at the end of the tunnel.

Same as on Monday, a total of 14 stocks came up for trading on Tuesday, with three shares in the plus column, two in the minus and 9 remaining unchanged.

A major gainer on Tuesday was Pak Datacom Limited, which rose by Rs2.20 to close at Rs47.20, but on a small turnover of 100 shares. Gharibwal Cement, which is witnessing a bit of activity since the last few days, rose by 62 paisa to end at Rs17.99.

Among the declining scrips, Southern Electric shed three paisa to end at Rs3.60 and U.D.L Modaraba ex-dividend lost one paisa at Rs3.06.

Aggregate shares coming in for trading stood at 44,600, which represented a third of the volume of shares that changed hands the previous day.

Turnover of 23,000 shares was recorded in Pak Commercial Leasing which was the largest for the day. The stock closed unchanged at Rs0.55. Escorts Bank also ended at the previous closing value of Rs8.40, after a trading in 3,000 shares.

Millat tractors saw 3,000 shares change hands but with no change in value at Rs163.92. Thatta Cement with the fifth largest volume of 2,000 shares also closed at the old level of Rs16.

DEFAULTER COUNTER: Only two shares showed activity on this counter. National Assets gained six paisa to close at Rs0.47 on a volume of 9,000 shares and Dewan Auto Engineering saw trading in 1,000 shares, unchanged at Rs1.45.