KARACHI, July 12: Stocks on Tuesday fell further as liquidity problems continued to haunt investors limiting their operational activity to modest proportions as was reflected by steep decline in the traded volume.

The post-COT suspension trading scenario is still unclear as badla financers may take a couple of days more to resume normal lending operation but falling rates may not allow them to come in a big way.

It is, however, still unclear how the COT rates will react to the changed situation. They have fallen from 14 per cent to 12 per cent after the news of COT suspension reach the market.

The KSE 100-share index suffered a fresh fall of 42.34 points at 7,511.94 as compared to 7,554.28 a day earlier as strong buying in PTCL failed to avert the decline. It touched the day’s highest and the lowest at 7,589.95 and 7,457.88, showing an either-way movement of 132 points and its volatility in response to external news.

Other leading base shares, notably OGDC, PSO, National Bank, Pakistan Petroleum and Pakistan Oilfields led the market decline.

The widely rumoured hike in the national saving schemes rates was due on Monday but it was delayed for unknown reasons, brokers said adding “any increase in the rates could drain out massive amounts from an uncertain stock market, already trying to keep a bold face.”

But some others said the suspension of COT for an indefinite period to ease the liquidity problems is bound to play its role after the moneyed people are back in the share business.

“The long-drawn COT tussle has scared the badla financers away and they will take a couple of days more to be in the arena again,” analysts said. “Once they are in liquidity problems may be solved and the market will resume its upward drive as warranted by both positive market fundamentals and the economic recovery.”

“The current pause appears to be tactical,” says an analyst. “The market has already in its fold its major demands and may resume normal trading any time.”

A considerable decline in the turnover figures reflects pressure on liquidity as both bank and badla margin financing are still to resume normal market operations, he said.

As a result, minus signs dominated the list under the lead of Wyeth Pakistan and Rafhan Maize Products, off Rs18.25 and and Rs30.75 respectively. Other notable losers included Bhanero Textiles, Attock Refinery, Dawood Hercules, Pakistan Oilfields, Mari gas, Pakistan Petroleum, and Shell Pakistan, which fell by Rs4.35 to Rs15.

Clariant Pakistan and IGI Insurance were leading among the gainers, up Rs5.25 and Rs7.90 respectively. PICIC, Pakistan Hotels, Atlas Honda, Artistic Denim, and EFU Life Insurance followed them, up by Rs3.45 to Rs5.

Trading volume fell to 182m shares from the previous 217m shares as losers held a strong lead over the gainers at 172 to 107, with 25 shares holding on to the last levels.

PTCL was actively traded, up 80 paisa at Rs64.80 on 49m shares followed by OGDC, off 60 paisa at Rs107 on 38m shares, Pakistan Oilfields, lower Rs5.80 at Rs302 on 13m shares, Fauji Fertilizer Bin Qasim, higher 35 paisa at Rs29.85 on 11m shares, Pakistan Petroleum, sharply lower by Rs10.75 at Rs204.25 on 10m shares, National Bank, easy 90 paisa at Rs107.50 on 9m shares and PSO, off Rs1.55 at Rs386.20 on 9m shares.

Other actives were led by PICIC, sharply higher by Rs3.50 on 6m shares, Dewan Salman, up 90 paisa on 3m shares and PICIC Growth Fund, steady by 10 paisa also on 3m shares.

FORWARD COUNTER: Pakistan Petroleum also came in for active selling on this counter, and was marked down by Rs9.80 at Rs206.30 on 21m shares, followed by OGDC, lower 80 paisa at Rs107.80 also on 20m shares, and PTCL up 50 paisa at Rs65.35 on 14m shares.