KARACHI, June 12: Trading on the stock market on Monday resumed on a terribly insipid note as both leading investors and institutional traders kept to the sidelines apparently assessing the negative fallout of the prevailing turmoil in the share business amid reports of SECP probe into alleged manipulations by some of the brokers.

An idea of the prevailing sluggishness may well be have from the trading volume, which fell to a five-year low at 62m shares as investors were not inclined to make larger commitments even at the attractively lower levels on most of the blue chip counters disappointed apparently by some of the negative news, notably reports of share manipulation probe against some of the leading brokers.

However, it was not the largest single-session low volume as it has dropped to an all-time low of 15.141m shares on Sept 3, 2001 after the implementation of T-3 trading system on the KSE. The second lowest figure was recorded at 16.565m shares after the US attacked Afghanistan on Oct 8, 2001.

“The fall in volume reflects a silent protest against the reported probe against some of the brokers,” presumes a leading analyst, adding “but they know the SECP move could well prove an exercise in futility in the final analysis as the rise and fall in shares is an in-built share mechanism in the stock trading.”

The KSE 100-share index suffered a fresh fall of 116.97 points at 9,732.86 as compared to 9,849.83 at the last weekend as leading base shares fell further under the lead of oil and bank shares, notably OGDC, National Bank, Pakistan Petroleum and Pakistan Oilfields. At one stage it soared to session’s high of 9,947.33, up by 98 points but later selling pushed it down.

But the current market stance and the falling volumes reflect that some inherent market inhibitions associated with the post-budget taxes on some of the sectors affecting indirectly the share business, brokers said, adding “rumours about the default of some of the leading brokers and sale of their cards to clear their outstanding dues being on the top”.

“Most of the blue chips and stocks having potential of capital gains are now in the buying range,” leading analysts said “those who have the courage to take financial risks and conviction in the market’s traditional two-way cycles are poised for a big kill”.

There is no need to sit on the sidelines as the market is not in a terribly bad shape as it still attractive in more than one ways after some of dominating depressants fade into an expected bull-run, they added.

“Few hundred points fall in the index in any way does not reflect the market crash,” a leading broker commenting on the current happenings on the market said. “Currently ruling above 9,000 points against its base of 1,000 points it is still more than stable and is capable of recoup the loss after the bearish cycle ends”.

Minus signs again dominated the list but some of the leading shares including Pakistan Services and Nestle Pakistan managed to finish with gains ranging from Rs12 to Rs39, followed by Arif Habib Securities, EFU Life, Indus Motors, Shaheen Insurance, New Jubilee Insurance, Sui Northern Gas, Atlas Honda and Treet Corporation, up by Rs3 to Rs11.05.

HinoPak Motors and Pakistan Petroleum fell by Rs7.35 and Rs7.80 respectively being major losers. Other, which also suffered fall included MCB, IGI Insurance, Nishat Mills, National Refinery, Attock Petroleum, Pakistan Oilfields, Pak-Suzuki Motors, Siemens Pakistan, Sanofi–Aventis and Gillette Pakistan, off Rs4 to Rs6.60.Trading volume fell to 62m shares from the previous 146m shares as losers maintained a strong lead over the gainers at 174 to 98, with 37 shares holding on to the last levels.

National Bank topped the list of actives, off Rs1.95 at Rs195 on 9m shares followed by D.G. Khan Cement, lower Rs3.80 at Rs84.15 on 5m shares, Pakistan Petroleum, off Rs7.80 at Rs202.20 on 4m shares, MCB, lower Rs4.10 at Rs185 also on 4m shares, Pakistan Oilfields, easy by Rs5.90 at Rs338.60 on 3m shares.

Other actives were led by Fauji Cement, lower 65 paisa on 4m shares, Faysal Bank, easy by Rs1.10 on 3m shares, Lucky Cement, off Rs3.90 also on 3m shares and Fauji Fertiliser Bin Qasim, lower 10 paisa on 2m shares.

FORWARD COUNTER: National Bank also remained under pressure on the cleared list an fell by Rs2.30 at Rs196.20 on 11m shares followed by OGDC, off Rs3.05 at Rs126.65 on 9m shares and Pakistan Petroleum, lower Rs7.80 at Rs203.40 on 6m shares.