KARACHI, Oct 7: After several lean sessions stray activity was witnessed on the stock market on Tuesday as some of the leading shares came in for modest short-covering followed by reports of positive developments on the official funding perceptions.Investors seem to have found a cue from the finance minister’s assurance to the KSE delegation, which met him recently that the bank funding for the proposed fund of Rs20 billion will be expedited, analysts said.

The change in the market’s current bearish psychology is also well-reflected in the KSE 100-share index, which recovered 2.51 points after having fallen modestly over the last couple of weeks. It was last quoted at 9,181.48 points but the KSE 30-share index fell by 2.09 points at 10,062.35, reflecting the weakness of some pivotals.

Although the selective support extended to some blue chips was widely welcomed but the broad market stayed weak as some of the leading shares came in for active selling under the lead of Unilever Pakistan and Millat Tractors.

“All eyes seem to be focused on the removal of the floor on the index, which analysts hope will “allow normal trading after a brief fresh shakeout.”

However, the ministry of finance or the KSE high-ups is not inclined to give a specific date for the removal of the cap on the index owing to some external depressants, which could cause fresh price erosions.

“The news from the law and order front in the backdrop of suicide attacks, falling rupee, which hit its new career low and weak economy may not allow the consolidation forces to come to the aid of the market in the unfolding scenario,” some analysts fear.

The hard-hit are said to be foreign investors, who are trying to get out of the market as the weak rupee has eroded their base capital sharply lower, they said adding “they want immediate lifting of the cap from the index.”

Although losers maintained a modest edge over the gainers, some of the leading shares managed to finish higher from the recent lows, notable among them being Pakistan Services and National Foods, up by Rs23.15 and 3.30, respectively.

They were followed by Siddiqsons Tin, Hajra Textiles, Chashma Sugar, B.M.A. Principal and Sitara Energy, which were quoted higher by 20 paisa to one rupee.

Losers were led by Millat Tractors and Unilever Pakistan, off Rs2.59 and Rs5 followed by Al-Zamin Leasing, Reliance Insurance, Olympia Spinning, Pak Elektron and Pak Datacom, off by 67 paisa to Rs2.55.

Trading volume showed a fresh modest rise of 2.040m shares as compared to previous 1.560m shares but losers had a small edge over the gainers at 14 to 10, with 65 shares holding on to the last levels.

The active list was topped by Golden Stocks Fund, steady by one paisa at Rs4.90 after early having hit the peak of Rs5.64 on 0.602m shares, Meezan Bank, static at Rs27.20 on 0.501m shares, NIB Bank, also static at Rs8.45 on 0.248m shares, Pak Elektron, off Rs1.01 at Rs38.99 on 0.191m shares, Pak Datacom, sharply lower by Rs2.55 at Rs.48.45 on 0.65m shares, Sitara Energy, up one rupee at Rs20 also on 0.65m shares and Pace Pakistan, static at Rs19.24 on 0.60m shares.

Southern Electric followed them, unchanged at Rs3.90 on 0.54m shares, Gharibwal Cement, lower 46 paisa at Rs18.04 on 0.47m shares and Al-Zamin Leasing, lower by 67 paisa at Rs1.83 on 0.28m shares.

FORWARD COUNTER: Trading remained suspended on this counter for the second session in a row on technical grounds.

DEFAULTER COS: Five shares came in for alternate bouts of buying and selling under the lead of Al-Qaim Textiles, up by 25 paisa at Rs1.25 on 1,500 shares followed by Mukhtar Textiles, easy by 21 paisa at 53 paisa on 1,000 shares and Unicap Modaraba, lower by three paisa at 40 paisa on 10,000 shares.

National Asset Leasing and Zeal Pak Cement were held unchanged at 40 paisa and Rs1.16 on 9,000 and 3,000 shares, respectively.

DIVIDEND: Reliance Cotton, cash 10 per cent, Mehmood Textiles, 15 per cent, Sitara Energy, 25 per cent, and Khyber Tobacco 15 per cent.