KARACHI, Aug 5: Stocks on Monday lacked normal trading interest as leading investors including the institutional traders kept to the sidelines most of the time apparently awaiting some fresh stimulating news from the corporate front.

The KSE 100-share index ended with the clipped gain of 3.16 points at 1,782.56 after rumours of terrorist attack on a missionary school in Murree and hasty selling by some weakholders.

In normal trading conditions, each recessionary cycle follows by a correction alone on technical grounds but the prevailing status quo being maintained by both the bulls and bears speaks of some unwritten deal between the two to behave in unison.

The market’s mid-session attempted rally was, however, halted by reports of a terrorist attack on a missionary school in Murree and some causalties but larger decline was averted as both bulls and bears stayed on the sidelines.

After opening lower by five points, the KSE 100-share index finally ended higher by 3.16 points at 1,782.56 as compared to 1,779.40 at the last weekend, reflecting the strength of some leading base shares.

Stock analysts said the market appears to be a victim of both technical and new reform ideas from the top to modernize stock trading and make it more transparent.

But the leading market players including the financial traders seem to be in a mood to “go for a big kill just in one go to oblige the apex body and hence the continued sluggishness”, they said.

The record low hit by the badla rates (carryover transactions) and higher COT business were some of the other negative factors limiting the market’s manoeuvring capacity.

However, the continued sluggishness is hurting the interests of both investors and the brokerage houses as “low volumes mean low margins and higher overheads”.

“Some one has to break it as it now overdue”, one broker said fearing “the holding capacity of many is losing patience and there could be a panic sell-off if the current scenario in not changed”.

Some floor brokers predict the mid-session rally and good gains scored by most of the leading shares reflects that the prevailing dullness may be fading out as a section of investors has decided to re-enter the market at the current lower levels.

The largest rise of Rs15 was noted in Wyeth Pakistan, which seems to have resumed its upward trend followed by International Industries, Lever Brothers, Noon Pakistan, and Rafhan Maize, which posted gains ranging from Rs2 to Rs10.

Sanghar Sugar, Shahtaj Sugar, Glaxo-Wellcome, Wah Noble Chemicals, Nestle MilkPak and Pakistan Oilfields were among other prominent gainers, up by one rupee to Rs1.50.

Losers were led by EFU Life Insurance, Shaheen Insurance, Ideal Energy, and Crescent Lease, off 95 paisa to Rs1.15, while other losses were fractional.

Trading volume rose to 29m shares from the previous 17m shares but it was a shame for a market having capitalization of about $8 billion and over 700 shares including some mega issue on its trading list. Losers maintained a fair lead over the gainers at 126 to 98, with 68 shares holding on to the last levels.

Hub-Power was modestly traded on the higher side ahead of its board meeting next month and expectations of a good final dividend, up five paisa at Rs24.30 on 7m shares followed by PSO, lower 45 paisa at Rs138.75 on 4m shares, ICI Pakistan, firm by 10 paisa at Rs38.05 on 2m shares, FFC-Jordan Fertilizer, up 15 paisa at Rs6.20 also on 2m shares and PTCL, steady by five paisa at Rs17.70 also on 2m shares.

Other actives were led by Engro Chemical, steady 10 paisa on 2m shares, Telecard, higher by 45 paisa on 1.486m shares, National Bank, unchanged on 1.395m shares, Pak PTA (right), also unchanged at Rs0.05 on 1.150m shares and Sui Northern, unchanged on 0.831m shares.

CLEARED LIST: Activity on the forward counter was also modest in the absence of strong speculative buying from the leading operators. PSo led the list of actives, lower 20 paisa at Rs139.40 on 2m shares followed by Hub-Power, steady five paisa at Rs24.40 on 1.743m shares and Engro Chemical, unchanged at Rs59.55 on 0.560m shares.