KARACHI, July 11: Investors on Monday welcomed the suspension of phase out of the Carry Over Trade (COT) but appeared to be disappointed on the cap on Badla financing at Rs12 billion as was reflected by the fading of initial buying euphoria. After earlier rising by 90 points in an apparent welcome to suspension of the COT phasing out, the KSE 100-share index finished reacted by 34.66 points at 7,554.28 as compared to 7,588.94 at the last weekend as leading base shares reacted from the previous highs on late selling. It touched the day’s peak level of 7,677.63 and the lowest at 7,553.76 points.

However, the general perception is that the market will react positively to the suspension of COT in due course as “it is not that bad to operate within the cap of Rs12 billion to avoid unpleasant situations,” brokers said.

The cap of Rs12 billion on an average daily volume of about 7m shares in the cleared list could well prove a major inhibiting factor for the moneyed people but it may not be the last word from the SECP and could be revised on the pattern of COT in due course, they predicted.

“Brokers may have won the long-drawn battle on the badla front but the SECP seems to have taken away what was given in the shape of suspension by keeping a cap on financing,” analysts said.

The high-ups of Securities and Exchange Commission of Pakistan (SECP) may have in mind, after retaining the cap of Rs12 billion on COT financing, the tragic events of March when a number of brokers surpassed their exposure limits on the forward counter, creating crisis-like conditions and settlement problems.

“The ball is now in the court of investors and brokers to line up funds to cover the supposed supply gaps for normal stock trading,” analysts said. “The cap could be removed in similar fashion as did the COT.”

“But I don’t think that bad in the post-COT suspension trading scenario,” says a leading broker. “Everyone would come to a logical conclusion after second thoughts.”

Barring OGDC, which fell from the weekend highs, other leading oil shares, notably PSO and Pakistan Oilfields came in for active support and finished higher amid active short-covering. Shell Pakistan and Pakistan Petroleum on the other hand came in for active selling, falling by Rs7 and Rs8 respectively.

Plus signs dominated the list, other notable gainers being Century Papers, Sceurity Papers, Atlas Honda, Millat Tractors, Sapphire Textiles, Artistic denim and EFU General, which posted gains ranging from Rs4 to Rs6.90.

Losers were led by Ferozsons Lab, Pakistan Cables, Gul Ahmed Textiles, National Refinery, and EFU Life, fell by Rs3 to Rs5.

Trading volume showed a modest rise at 217m shares from the previous 173m shares at the last weekend as gainers maintained a fair lead over the losers at 156 to 127, with 40 shares holding on to the last levels.

OGDC topped the list of most actives, off Rs1.15 at Rs107.60 on 49m shares followed by PTCL, easy 20 paisa at Rs64 on 31m shares, National Bank, lower Rs1.40 at Rs108.40 on 20m shares, Pakistan Oilfields, higher by Rs9.40 at Rs307.80 on 19m shares, PSO, up Rs2.55 at Rs387.75 on 15m shares, Pakistan Petroleum, off Rs8 at Rs215 on 11m shares, PICIC Growth Fund, firm by 40 paisa at Rs54.40 on 5m shares and Kot Addu Power, up 20 paisa at Rs40.25 on 4m shares.

Other actives including Fauji Fertilizer Bin Qasim, steady by five paisa on 13m shares, and DG Khan Cement, up Rs1.10 on 5m shares.

FORWARD COUNTER: Pakistan Petroleum came in for active selling at the inflated levels and fell by Rs8.90 at Rs216.10 on 20m shares followed by OGDC, lower by Rs1.10 at Rs108.60 on 15m shares and Pakistan Oil-fields, higher by Rs9.25 at Rs310 on 10m shares.