KARACHI, April 18: Stocks on Monday fell across a broad front on panic- selling triggered by the prevailing confusion over the extension of Carryover Trade (COT) issue but there was no official word from the KSE about its meeting with SECP chairman on its proposal. The panic-selling gripped the entire market but the decline was led by the energy and cement sectors, which remained under pressure. The market sentiment was also influenced bearishly by reports that the fiscal measures in the new federal budget will have a provision to tax the speculators who have made massive capital gains in the share and property business.

The KSE 100-share index shed a good part of the previous gains and was marked down by 278.70 points or 3.71 per cent at 7,234.21 as compared to 7,512.81 points at the last weekend session. Market capital also eroded Rs32.566bn at Rs2,044.977bn.

Most of the gains both in terms of index and capital appreciations netted during last three sessions of the previous week were clipped owing to prevailing confusion on the COT issue.

“The market could suffer fresh erosions, but it will rise if the SECP response is positive and it has decided to go along with the KSE thinking to avert a possible collapse”.

The KSE delegation met SECP chairman on Saturday and sought his approval to extend COT (badla financing) to pull the market out of the current state of uncertainty but so far there is no official word on the issue.

Conflicting rumours are circulating in the market. Some claim the SECP has given its nod for the extension of COT up to Aug 31. But some others say he has rejected KSE proposals but the KSE is silent on the issue.

“The KSE should have come out with the outcome of talks rather than keeping mum on the issue”, analysts said “yes or no from the SECP should have given an option to investors to redefine their investment priorities”.

Most of the market leaders and heavy weights including PTCL remained under pressure and shed a good part of gains scored during the last week. Pakistan Oilfields whose board met on Monday was an exception amid reports of higher dividend and EPS.

Minus signs dominated the list, major losers being Javed Omer, Gatron Industries, Artistic Denim, National Refinery, PPL, Fauji Fertilizer, Pakistan Oilfields, Shell Pakistan and PSO, which suffered fall ranging from Rs7.30 to Rs19.95.

Mari Gas, Lakson Tobacco, Abbott Lab, Ferozsons Lab, HinoPak Motors, Jahangir Siddiqui & Co and EFU General and Goodluck Industries moved higher by Rs4 to Rs11.85.

Trading volume suffered a modest fall at 312m shares as compared to 344m shares at the last weekend as losers led gainers by a wide margin of 210 to 91, with 21 shares holding on to the last levels.

PTCL again topped the list of most actives, off Rs3.15 at Rs60.25 on 93m shares followed by National Bank, off Rs5.30 at Rs100.85 on 30m shares, OGDC, lower Rs3.95 at Rs100.85 on 26m shares, Sui Northern Gas, off Rs2.55 at Rs56 on 24m shares, MCB, lower Rs1.55 at Rs70.45 on 22m shares, Fauji Fertilizer Bin Qasim, easy by Rs1.60 at Rs30.75 on 20m shares.

Other actives were led by Pakistan Oilfields, off Rs8.15 on 17m shares, D.G.Khan Cement, lower Rs3.20 on 12m shares, Bank of Punjab, easy Rs4.25 on 10m shares and Pak PTA, lower 70 paisa on 8m shares.

FORWARD COUNTER: PTCL also led the list of actives on this counter, off Rs3.10 on 12m shares followed by OGDC, lower Rs5 at Rs99 on 9m shares, National Bank, easy Rs3.35 at Rs102.55 on 5m shares, and Fauji Fertilizer Bin Qasim, lower Rs1.60 at Rs31.35.