KARACHI, March 4: The Lahore bomb blast on Tuesday accelerated the pace of selling on the stock market but strong short-covering at the lower levels towards the closing bell limited the overall decline. The KSE 100-share index was off 80.09 points at 14,736.34.

Although the market was ruling within a narrow groove prior to the bomb blast, killing half a dozen persons, it ran into deeper recession after the report and shed 160 points but late buying at dips allowed it to finish well above the session’s low.

The market gave another weak performance as investors mostly played safe awaiting positive developments on the political front, notably formation of governments at the centre and the provinces.

The KSE 100-share index turned in highly volatile movements as investors played on both sides of the fence amid conflicting reports about the new political set up. Even investors were in two minds despite the nomination of Sindh chief minister. But the mid-session reports of bomb blast in Lahore triggered near-panic selling and the index was at one stage down by 160 points. However, during the closing stages it managed to cut a good part of the earlier losses on active short-covering in the pivotals.

The final closing was lower by 80.09 points around 14,736.34 as compared to 14,816.43 a day earlier as dividend linked short-covering allowed it to close partially recovered.

Dividend announcements by leading insurance companies plus bonus shares should have put the market back on the rails but political constraints worked against the post-election optimism, Analyst Ahsan Mehanti said.

The general perception is that the market may continue to show erratic price movements before the new political set up is in place as a lot of maneuvering among the contenders of power did not allow investors to follow a set course of action, another analyst Hasnain Asghar Ali said.

But some others said nomination of the future prime minister by the PPP possibly later in the evening could restore investor’s confidence in the future political government.

Meanwhile, it is good to know that the Security and Exchange Commission of Pakistan (SECP) has made arrangements to release daily the amount of investment by the foreign investors to end the current speculation about their presence in the market. The foreign investors, according to it, have a stake in over 300 shares out of the total listed 652 shares.

Leading gainers were led by Wyeth Pakistan and JS & Co, up by Rs75 and 28.65, followed by Bhanero Textiles, National Foods, Atlas Battery, Grays of Cambridge, Shell Gas, JS Global, Adamjee Insurance and EFU General, which posted gains ranging from Rs5 to 24.50.

Prominent losers were again led by AKD Capital and HinoPak Motors, off Rs32.50 and 27 followed by PSO, Gillette Pakistan, Nestle Pakistan, Treet Corporation, Shell Pakistan, Al-Ghazi Tractors, IGI Insurance, Habib Bank and EFU Life, which suffered fall of Rs6.05 to 14.

Turnover figure showed a modest rise at 218m shares from the previous 196m shares but losers held a fair lead over the gainers at 194 to 144, with 51 shares holding on to the last levels.

MCB Bank came in for fresh selling and was marked down by Rs4.35 at Rs408.90 on 12m shares followed by Bosicor Pakistan, steady by 30 paisa followed by reports that the Dubai-based Abraaj Investment Group has taken a stake in it at Rs20.90 on 11m shares, Lucky Cement, up 70 paisa at Rs128.95 on 10m shares, Bank of Punjab, lower by Rs1.25 at Rs95.65 on 9m shares, Bank AlFalah, off 60 paisa at Rs61.15 also on 9m shares, D.G. Khan Cement, up Rs2.35 at Rs108.35 on 8m shares and United Bank, off Rs4 at Rs198 on 6m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, steady by five paisa at Rs45 on 7m shares, TRG Pakistan, easy 25 paisa at Rs12.45 also on 7m shares and NIB Bank, lower 15 paisa at Rs21.40 on 6m shares.

FORWARD COUNTER: MCB Bank also led the list of actives on this counter, off Rs4.35 at Rs407 on 12m shares, followed by Lucky Cement, up 35 paisa at Rs129.45 on 4m shares, and Bank of Punjab, easy by five paisa at Rs96.20 also on 4m shares.