KARACHI, June 5: Trading on the stock market on Monday resumed on a cautious note as the pre-budget session did not show violent either-way movement as investors were not inclined to take fresh positions on any of the counters in the absence of some “positive budgetary leaks”. The index gained another 27.63 points at 10,374.00.

Both sellers and buyers maintained a near-status quo as speculative forces failed to sell the idea of a good or a bad budget despite some negative rumours earlier in the session.

Although there were a spate of rumours, notably increase in Capital Value Tax (CVT) from 0.01pc to 1pc and central excise duty on services provided by the banks, extension in tax exemption on capital gains for another couple of years and hopes on uncapping of funding under CFS, kept investors in good mood and they played on both sides of the market.

“Fears and hopes associated with any new budget were there as even those who had close links with Islamabad in the relevant quarters failed to get any leak and kept to the sidelines,” market sources said.

However, the general perception about the budget was that it could boost stock trading to its pre-reaction level on the strength of some relief on the oil sector, which alone could take the market to new highs, they added.

But the uncertainties associated with the new budget were there as both leading brokers and financial institutions did not react violently even to some cues to likely tax relief for some sectors, analysts said.

All the leading shares and current actives moved within an extremely narrow range under the lead of OGDC, National Bank, Pakistan Petroleum and PTCL but leading cement shares including D.G. Khan Cement and Lucky Cement came in for modest support amid market talk of a possible ban on fresh cement imports.

After early rising to session’s peak level of 10,436.47, the KSE 100-share index reacted to finish with a clipped gain of 27.63 points at 10,373.86 as compared to 10,346.23 at the last weekend.

“The steep decline in the turnover figure to only 103m shares is not a lull before brewing storm,” predicts a leading stock analyst “the market is certainly preparing from a corporate friendly taxation proposals”.

Plus signs again dominated the list under the lead of Treet Corporation and Dawood Hercules, up by Rs8.90 and Rs12.25, followed by Artistic Denim, Atlas Insurance, Nishat Mills, Pakistan Insurance, Shell Pakistan, Atlas Honda, Pakistan Cables, Sui Northern Gas, Gillette Pakistan and Jahangir Siddiqui Bank, up by Rs5 to Rs8.20.

Arif Habib Securities and Grays of Cambridge fell by Rs8 and Rs19.05 respectively. Other losers included Pakistan Refinery, Pakistan Cables and HinoPak, off Rs4.70 to Rs7.70.

Trading volume fell to a year’s low of 103m shares from the previous 215m shares as gainers topped losers by 185 to 140, with 33 shares holding on to the last levels.

OGDC again topped the list of actives lower after touching the day’s best bid at Rs140.20 on 18m shares followed by National Bank, up Rs1.50 at Rs217.50 on 15m shares, D.G. Khan Cement, firm by 50 paisa at Rs96.25 on 8m shares, Pakistan Petroleum, off Rs1.65 at Rs230.25 on 4m shares, Lucky Cement, up by Re1 at Rs105 also on 4m shares, MCB, lower 45 paisa at Rs209.45 on 4m shares and PTCL, steady by 25 paisa at Rs47.25 on 3m shares.

Other actives were led by Nimir Chemicals, up by 50 paisa on 3m shares, Natover (pref), unchanged also on 3m shares and Fauji Cement, up 15 paisa on 3m shares.

FORWARD COUNTER: National Bank came in for modest support and rose by Rs1.30 at Rs218.50 on 10m shares, OGDC, lower 45 paisa at Rs137.30 on 8m shares and MCB, easy 45 paisa at Rs209.50 on 5m shares.

Pakistan Petroleum followed them, off Rs1.70 at Rs231.50 on 4m shares and D.G. Khan Cement, steady by 10 paisa at Rs96.50 on 3m shares.

DEFAULTER COS: Trading on this counter was also dull as investors were not inclined to make fresh commitments awaiting the taxation proposals in the new budget. Both price changes and turnover figures were modest.

BOARD MEETINGS: Ittefaq General Insurance, Union Bank, on June 7, Associated Industries and Sigma Leasing, on June 9.