KARACHI, Sept 8: The stock market on Monday welcomed the election of Asif Ali Zardari as President of Pakistan as was reflected by initial buying euphoria but it failed to sustain the early run-up on late-selling ahead of KSE board meeting on price-freeze.The KSE 100-share index opened higher by 128 points at 9,460.29, but the political and economic challenges, Mr Zardari will have to face in the coming months caused some rethinking on his victory. It ended with a fall of 45.96 points at 9,296.23.

Some other said Mr Zardari’s policy guidelines after the assumption of the president office would give an idea to the investors how to move under the new economic agenda to put the economy back on the rails.

The index finally finished with a fall of 45.96 points at 9,296.23, while its junior partner the KSE 30-share index was off by 79.37 at 10,161. But the KMI-30 share index suffered sharp fall of 176.64 points at 11,244.70.

“Roar of the bulls was not witnessed on any of the counters as was speculated by some analysts that Zardari’s election as president could trigger buystops at the current lower levels,” said a broker.

However he hoped that it could manifest itself in due course as was warranted by the current lower levels.

The board meeting of the KSE high-ups, which was due late in the evening, to review the floor on the index and price-freeze whether or not to lift it as a good part of the prevailing political uncertainty was ended with the presidential election.

“Investors are expecting new policy initiatives by the ruling elite on the economic and corporate front before resuming normal trading,” another analyst said. He added that the massively mauled investors may not be carried out by early euphoria as the political and law and order situation was still fraught with high risks.

There are strong rumours that the KSE has proposed to make it mandatory on the listed companies to distribute 40 per cent of their earnings among the shareholders. The proposal is ready and will be forwarded to the SECP for its formal approval.

Leading gainers were led by National Foods and Sapphire Fibre, up by Rs15.59 and Rs6, Royal Bank, Ibrahim Fibre, Javedan Cement, Attock Petroleum, Pak Datacom, Clariant Pakistan and Clover Pakistan, up by Rs1.45 to Rs4.89.

Oil shares led the market fall under the lead of PSO and other blue chips, notably Engro Chemical topped the losers, off by Rs9.01 and Rs7.56 respectively. Other prominent losers were led by Thal Industries, Attock Refinery, National Refinery, Shell Pakistan, Mari Gas, Pakistan Oilfields, Indus Motors, Dawood Hercules, Ferozsons Lab, ICI Pakistan, Service Industries, which suffered fall ranging from Rs3.75 to Rs6.51.

Trading volume showed a modest rise at 48m shares as compared to 44m shares at the last weekend but losers forced a strong lead over the gainers at 95 to 46, with 85 shares holding on to the last levels.

NIB Bank led the list of actives, lower by 45 paisa at Rs8.74 on 6m shares followed by National Bank, unchanged after rising to Rs95.40 at Rs93.02 on 4m shares, OGDC, unchanged at Rs97.93 on 3m shares, Engro Chemical, off Rs7.56 at Rs180.44 on 2m shares, Nishat Mills, off Rs2.33 at Rs46.71 on 2m shares, Bank Alfalah, off 75 paisa at Rs31.25 on 2m shares, and Bosicor Pakistan, easy by seven paisa at Rs8.78 also on 2m shares.

WorldCall Telecom followed them, unchanged on 2m shares, Zeal Pak Cement, also unchanged at Rs1.16 on 2m shares and Eye Television, unchanged at Rs39.71 on 1.210m shares.

FORWARD COUNTER: NIB Bank also led the list of actives on this counter, lower by 44 paisa at Rs8.81 on 1.164m shares followed by National Bank, unchanged at Rs93.86 on 0.803m shares, Pakistan Petroleum, off Rs3.04 at Rs192.01 on 0.500m shares.