KARACHI, July 20: Stocks on Thursday remained unsettled throughout the session, as investors’ search for a positive direction proved an elusive goal amid tax rumours of share transfers in the Central Depository Company followed by snap selling.

But a steep increase in the trading volume in the process has raised hopes that investors now mean business ahead of corporate announcements both final and interim by some of the leading companies for the financial year ending June 30, 2006. The KSE index showed a fractional fall of 0.46 points at 10,198.32 after steep rise earlier.

The market, therefore, turned in highly erratic price movements as institutional traders and leading punters played on both sides of the fence amid conflicting rumours, notably tax on share transfer in the CDC and ahead of the president’s address to the nation late in the evening.

An idea of market’s volatility may well be had from the fact that the KSE 100-share index early opened 94 points lower but the mid session saw it up by 145 points at the session’s peak of 10,361.16 from the low of 100,29.07 points.

The index closed at 10,198.32 as compared to overnight’s 10,198.78, showing a fractional decline of 0.46 points, reflecting grim battle of wits between bulls and bears to tilt the price balance in their respective favours. The underlying sentiment, however, remained uppishly inclined.

Bank shares seemed to have been still groaning under the negative fallout of the central bank’s move which apparently aimed at redefining the monetary policy leading to two per cent rise in banks’ reserve requirements, analysts said, adding: “Fear that it could drain out massive amount of about Rs20 billion from the system and the consequent pressure on money supply worried them.”

After an initial robust recovery, National Bank again fell sharply lower, but MCB Bank managed to recover from the previous level and so did some of the leading cement shares. Oil shares fell under the lead of OGDC and Pakistan Petroleum.

President Pervez Musharraf is expected to speak on a number of national issues seek support to tackle them, brokers said, but rumour-mongers put it in another way, creating uncertain conditions in a robust market.

The market’s future direction was expected to be guided by the president’s speech and supported by the corporate announcements due during the next couple of weeks starting from next week, they added.

Leading gainers were led by Siemens Pakistan and Wyeth Pakistan, up Rs55 and Rs45, respectively, followed by Adamjee Insurance, Shell Pakistan, Pakistan Refinery, Abbott Lab, Berger Paints, Clariant Pakistan, Colgate Pakistan, Gillette Pakistan, Ferozson Lab, which posted gains ranging from Rs6.10 to Rs15.

Nestle Pakistan and AKD Capital fell by Rs25 and Rs10.75, respectively. Other prominent losers included Pakistan Cables, Dawood Hercules, HinoPak Motors, Pakistan Oilfields, Zulfiquar Industries and Treet Corporation, off Rs4 to Rs9.

Turnover figure rose to 352m shares from the previous 279m shares, as gainers maintained a slight edge over losers at 162 to 159, with 37 shares holding on to their previous levels.

DG Khan Cement topped the list of actives, up Rs2.15 at Rs98.45 on 39m shares followed by OGDC, lower 25 paisa at Rs136.75 on 32m shares, National Bank, off Rs3.40 at Rs221.10 on 25m shares, MCB, higher by Rs3.10 at Rs220 also 25m shares, Lucky Cement, up Rs1.45 at Rs110.95 on 20m shares, PTCL, easy 15 paisa at Rs42.35 on 18m shares, and Pakistan Petroleum, off Rs1.40 at Rs232.80 on 16m shares.Other actives were led by WorldCall, up 15 paisa on 23m shares, Fauji Cement, steady by 15 paisa on 21m shares, and Pak PTA, firm by 10 paisa on 10m shares.

FORWARD COUNTER: DG Khan Cement also came in for active support on the cleared list and was marked up by Rs2.15 at Rs98.75 on 8m shares followed by National Bank, off Rs1.80 at Rs222.70 also on 8m shares and OGDC, lower 70 paisa at Rs136.60 on 7m shares.