THE share market last week remained unsettled as investors were in double minds about the future direction of the Supreme Court hearing the contempt case against the prime minister and his expected indictment on Feb 13.

A massive relief package allowing free export of 75 items, mainly textiles, was well received by the market. However, its immediate impact on the textile sector was not known though expected to be positive, market sources said.

Massive increase in petroleum prices had its toll as it would raise input costs of the industrial sector, having negative impact on exports, dealers said.

Leading brokerage houses and investors, however, seemed to be a bit satisfied with the market performance as the hallmark of the activity was higher daily volumes, which crossed the 100 million mark on Thursday.

Active either-way gains and losses on blue chips counters under the lead of oil and fertilizer shares, kept the interest on higher side amid hopes that future trading would be more productive for stakeholders.

Although the KSE 100-share index managed to finish the week with an extended modest gain of 22.40 points at 11,982.62 as compared to previous week’s 11,960.22, its performance was highly erratic owing to weakness of the leading oil shares under the lead of Attock Petroleum, which fell despite an interim dividend of 175 per cent.

The benchmark index showed either-way movements eating away most of the gains netted early last week, sending bearish signals among the prospective investors encouraged by the recent relief package announced by the finance minister.

Barring Fauji Fertiliser, Engro Corporations and some leading oil shares, which maintained their rising trend on stray follow-up support, all other base shares came in for renewed selling.

“Investors seem to be shy of going beyond certain calculated buying limits,” says Ahsan Mehanti. “There is a loud whispering that credibility gap and political situation are behind the prevailing uncertainty and lack of support, mainly from foreign investors,” he said.

“There are also fears among a section of investors that it may be a trap to net those who may venture to opt for money laundering,” he said commenting on the blanket exemption given to the rich.

But analyst Faisal Abbas Rajabali thinks the political uncertainty and the effective date of April 1 may be the other reason behind investor’s reluctance to go for stocks that still ensure fair capital gains.

He said bullish sparkles here and there initiated by higher corporate earnings, however, failed to sustain the run-up as city law and order situation also took its toll amid reports of target killings.

“Investors seem to be just marking time after indulging in alternate bouts of buying and selling on small margin of profits,” another analyst Samar Iqbal said and hoped that some of them would be back in the arena in due course lured by the relief package and lower rates.

No one could deny the fact that the state of economy, according to the central bank, was not encouraging and the annual growth rate seemed to be un-achievable, the package of incentives announced by the finance minister last week should have brought in its fold even the casual investors for short-term capital gains.

On the corporate front, a cash dividend of 50.52 per cent plus bonus shares of 50 per cent by Fauji Fertiliser Company was well received in the market, which evoked good interest in its shares and five per cent cash dividend by Lotte Pakistan seemed to have fallen below market expectations as was reflected by the post-dividend sale of its share.

Future contracts: Much of the activity during last week remained confined to Engro Corporation on reports of higher earnings followed by leading oil shares under the lead of Attock group of companies, mainly after announcement of dividend by some of its group members.

But an interim cash dividend of 175 per cent by Attock Petroleum sans bonus share did not find favour with the investors as was reflected by sharp decline in its share value. But its other subsidiaries rose modest in post-dividend trading.

Other leading active group shares, mainly National Bank, D.G. Khan Cement and some others showed either way movements but on balance managed to finish higher.

—Muhammad Aslam