KARACHI, June 4: Trading on the share market on Monday resumed on a higher note on active short-covering in the blue chips at the weekend lower levels but late selling in some of the pivotal allowed it to finish with clipped gains.

A sharp decline in the turnover figure reflects that leading punters are still in two minds about the rumoured taxation relief in the new federal budget and generally played safe.

The KSE 100-share index, however, again crossed the barrier of 13,000 points on early short-covering in the leading base shares but late profit-selling in some of the leading bank shares, notably MCB and Bank of Punjab again pushed it lower from the session’s highs.

After having given highly erratic movements, touching the session’s lowest and the highest at 12,873.97 and 13,013.42, respectively, the KSE 100-share finally managed to end with a modest rise of 23.28 points at 12,956.94.

The index may have ended with fresh fall, reflecting the weakness of MCB, which has the largest weightage of 11 per cent in it but active buying in other heavy weights including OGDC, National Bank, Hub-Power allowed it to finish modestly higher wiping out initial losses.

It is customary with the pre-budget market that investors are not inclined to take even a calculated risk as taxation proposals in a new budget are always deceptive.

However, if a well-connected broker having links in Islamabad managed to find cue of some of the incentives he indulges in speculative buying on that counter and others followed him without ascertaining the real value of his adventure they are liable for financial risks, some analysts said adding” the budget is always an unreliable document until its fiscal measures are officially announced.”

“The market appears to be in search of positive leaks not the rumours about the fiscal incentives in the new national budget due on June 9, analysts said but in the absence of any investors played on both sides of the fence.”

There is a market talk of investment friendly budget, 50 per cent cut in the Capital Value Tax on share transactions, and a number of tax reflief both for the corporate and banking sectors, which could keep investors at their toes during the pre-budget sessions.

“No budget is tax-free even the election year one,” predicts a leading analyst, “tax adjustments here and there are possible but the net burden in the form of higher inflation rate is always there.”

Some of the leading shares whose floating stock is terribly low led the list of top gainers under the lead of JS & Co and Rafhan Maize, up Rs14.30 and 75. Other leading gainers included Arif Habib Ltd, JS & Co, EFU General and EFU Life Insurance, Mirpurkhas Sugar, Engro Chemical, Bata Pakistan and Sanofi-Aventis, higher by Rs8 to 13.65.

Fazal Textiles and Siemens Pakistan were leading among the losers, off by Rs12 and 84 followed by MCB, Dawood Hercules, Thal Jute, Pakistan Engineering, Al-Ghazi Tractors, Millat Tractors, Clariant Pakistan, Sitara Chemicals, lower by Rs4 to 6.50.

Trading volume further shrank to 287m shares from the weekend’s 373m shares as losers held a modest lead over the gainers at 180 to 155, with 48 shares holding on to the last levels.

TRG Pakistan led the list of actives, up by 85 paisa at Rs13.45 on 30m shares followed by D.G. Khan Cement, higher by Rs1.60 at Rs109.30 on 27m shares, Fauji Fertiliser Bin Qasim, firm by Rs1.30 at Rs37.35 on 25m shares, Hub-Power, up Rs1.75 at Rs37.50 on 18m shares and Bank of Punjab, sharply lower by Rs3.30 at Rs114.75 also on 18m shares.

OGDC followed them, up Rs1.20 at Rs123.10 on 15m shares, MCB, off Rs4.80 at Rs350.220 on 10m shares and National Bank, up by Rs2.90 at Rs253.95 also on 10m share and Nishat Mills, off Rs1.80 at Rs122.35 on 11m shares.

FORWARD COUNTER: Bank of Punjab came in for active selling on the cleared list and fell by Rs3.70 at Rs115.25 on 9m shares followed by MCB, easy Rs1.25 at Rs349.00 on 8m shares and D.G.Khan Cement, up Rs1.80 at Rs110.10 on 7m shares.