KARACHI, Feb 29: The Karachi Stock Exchange (KSE) 100-share index on Friday suffered week’s largest decline on weekend profit-selling and fell below the barrier of 15,000 points despite encouraging corporate announcements of both cash and bonus shares by the National Bank, Allied Bank and some others.

After fluctuating either way above the barrier of 15,000 points, it failed to sustain the index level of 15,000 points and finally finished at 14,934.30, off 143.89 points as compared to 15,078.19 a day earlier.

The free float 30-share index suffered a bigger fall of 277.19 points or 1.49 per cent at 18,367.29 points.

Dividend announcements by the National Bank and Allied Bank were on the higher side of the market expectations at cash 75 per cent plus bonus shares of 10 per cent, and at cash 15 per cent plus bonus shares of 20 per cent and EPS at Rs23.34 and 7.50, respectively, but failed to check the market decline.

Badla is terribly choked around Rs55bn for the last couple of weeks, says a leading stock analyst Ashraf Zakaria, adding “until it is defreezed, investor manoeuvring, as far as leveraged positions are concerned, are limited.”

The volatility of the index reflects that conflicting news from the political front did not allow investors to make long-term investment on the sectors where they could be pretty safe, both on technical and financial grounds, leading among them are banks, oil and cement shares.

Most of them still ensure a fair amount of capital gains as well as price appreciation and some of the foreign investors are said to be after them around the current levels, floor brokers said.

The board meetings of some leading companies, including National Bank, Allied Bank and Sui Southern Gas were in session but details of their profits or payouts were awaited by the investors till the close.

Analysts said investors are still in two minds about the future direction of the market until the new governments are in place despite the fact that the proposed coalition appears to be fairly strong and could deliver.

Reports that the assembly session is expected to be called by the middle of the next week will show how the political wind blows, they said and until then investors have decided to play safe.

However, much of the pre-election confusion is over and leading analysts say those who could take financial risks are out to grab scrips of their choice at the current levels and for good reasons too.

Some others are waiting for the next crucial week which could give the needed boost to the share business if all goes well on the political front after the parliament is in session.

Leading gainers were led by Unilever Pakistan Foods and Wyeth Pakistan, up by Rs88 and 75.75, followed by Sapphire Fibres, EFU Life, JS & Co, Atlas Battery, Service Industries, Mitchell’s Fruits, Pakistan Services, Habib Bank, Sanofi-Aventis, and United Sugar, which were quoted higher by Rs6 to 12.

Losers were led by Unilever Pakistan and AKD Capital, off Rs20 and 46.10. Other losers included Bank of Punjab, National Bank, United Bank, Thal Industries, Attock Petroleum, Shell Gas, Murree Brewery, EFU General, MCB Bank, HinoPak Motors, and Adamjee Insurance, which suffered fall, ranging from Rs5.60 to 13.50.Trading volume showed a modest rise at 335m shares from the previous 326m shares as losers held a modest lead over the gainers at 159 to 138,with 51 shares holding on to the last levels.

Fauji Fertiliser again led the list of actives, steady by 60 paisa at Rs45.40 on 40m shares followed by Bank of Punjab, off Rs5.25 at Rs100.25 on 37m shares, Arif Habib Securities, firm by Rs1.10 at Rs184.40 on 21m shares, National Bank, off Rs8.35 at Rs265.55 on 19m shares on post-dividend selling, OGDC, lower by 30 paisa at Rs129 on17m shares, Bank Al-Falah, easy by 50 paisa at Rs61.75 on 11m shares and Habib Bank, sharply higher by Rs11.55 at Rs316.40 on 9m shares.

Other actives were led by Nishat Mills, firm by 40 paisa at Rs116.15 on 14m shares, Fauji Fertiliser, up Rs2.15 at Rs136 on 12m shares, and D G Khan Cement, off Rs1.50 at Rs107.80 on 9m shares.

FORWARD COUNTER: Bank of Punjab came in for active selling and was marked down by Rs5.32 at Rs101.23 on 10m shares, followed by National Bank, off Rs6.90 at Rs2.67 and PTCL, up 20 paisa at Rs42.40 on 7m shares but its February settlement was easy by 10 paisa at Rs42.10 on 6m shares.