KARACHI, Dec 11: The denial by the central bank about the devaluation of the rupee or hike in interest rates triggered modest covering purchases on selected counters on Monday, although the activity remained terribly sluggish as investors could not digest the fallout of IMF advice.

Price changes were mostly fractional on modest volume as investors played safe in the back drop of SECP move to suspend trading in Callmate Telips on last Friday. Besides, investors could not precisely decide how to react to developing situation after IMF recommendation on exchange and interest rates.

After fluctuating either-way by 112 points in early trading, the KSE 100-share index finally managed to finish 22.51 points higher at 10,584.48. The session’s lowest and the highest was touched at 10,486.17 and 10,598.58.

The KSE-30 share index gained 64.44 points at 13,410.61 points as leading index shares finished recovered.

The IMF’s comments on Pakistan’s economy and suggestion to devalue the rupee by 10 per cent and increase in interest rates to cut current account deficit forced investors to play safe and did not go beyond protected financial limits, analysts said.

The IMF recommendations have raised many questions about the strength of the rupee and the strategy adopted by the government to check the widening trade imbalance worried a large section of brokerage houses, stock analyst Faisal A. Rajabali said, adding that it could curtail the activity on the market during the coming sessions.

Hasnain Asghar Ali, however, fears that despite central bank denial confusion persists in the market as leading investors could not precisely digest the fallout of the IMF suggestion.

The rupee is certainly weak against major currencies but there are other reasons behind its weakness, which the central bank seeks to redress by some corrective measures, he said.

“The foreign investors who have made bigger showing in the oil and banking sectors during the last couple of weeks will, however, on the sidelines at least until next month,” Ashan Mehanti predicts.

Among the top gainers, Engro Chemical on reports of fresh gas allocations and Attock Petroleum were leading, up by Rs8.60 and Rs14, followed by Central Insurance, JWD Sugar, Mirpurkhas Sugar, Attock Refinery, National Refinery, Gillette Pakistan and Clariant Pakistan, up by Rs4 to Rs8.35.

Leading losers were led by Dawood Hercules and Abbott Lab, off by Rs5 and Rs8.60 respectively. Bolan Casting, Millat Tractors, Ferozsons Lab, Bata Pakistan, Gatron Industries and Treet Corporation followed them, off Rs3 to Rs5.

Trading volume was light around the weekend level of 134m shares but gainers held a modest lead over the losers at 152 to 146, with 46 shares holding on to the last levels.

The most active list was topped by PTCL, steady by 10 paisa at Rs47.60 on 6m shares followed by Bank of Punjab, up by 95 paisa at Rs105.85 also on 6m shares, PICIC, unchanged at Rs72.40 on 5m shares, Pakistan Oilfields, up by Rs4.30 at Rs368 also on 5m shares, National Bank, firm by five paisa at Rs258.50 on 4m shares and Pakistan Petroleum, up by Rs1.55 at Rs238.95 on 3m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, easy five paisa on 5m shares, Engro Chemical, sharply higher by Rs8.60 also on 5m shares, Telecard, up by 60 paisa on 3m shares and Bank Alfalah, steady by five paisa also on 3m shares.

FORWARD COUNTER: National Bank led the list of actives on the cleared list, up by 25 paisa at Rs260.55 on 6m shares, followed by OGDC, steady 15 paisa at Rs120.35 on 3m shares and Pakistan Oilfields, higher by Rs3.20 at Rs369.15 also on 3m shares.