KARACHI, Sept 24: Trading volume on the Karachi Stock Exchange on Wednesday fell to a new single-session low of 2.792m shares as investors kept to the sidelines on the eve of the KSE floor review meeting on Thursday.
On Monday the market recorded the second single-session volume figure at 3.524m shares.
The prevailing silence on the part of big operators is terribly intriguing as the floor may not be the real issue linked to the current sluggishness, some analysts said, adding “its removal or status quo may not change the future market outlook as it is chained by more than one negative economic factors and political instability linked to country risk factor”.
The KSE 100-share index was marked down by 8.76 points at 9,190.75, while the KSE 30-share index was fractionally off by 0.42 points at 10,064.44.
Although the ban on blank and short sale prior to the KSE’s Sept 25 meeting indicates that the index may be free from any official checks from Friday after the removal of the floor.
“The ban on blank- and short–selling appears to be a pre-emptive step to check further fall in the index after the floor is removed,” said analyst Tabish H. Rajabali “it may not be short selling which will take further toll of the index but the general selling”.
There have been strong rumours about off-the-floor transactions by some of the foreign investors who wanted to get out of the market at reported heavy losses, notably after the Islamabad blasts and the market may be flooded with sellstops after the downside cap on the index is removed, he added.
Much will depend on the will of the leading fund managers, notably the one being managed by the NIT, how they will absorb an expected avalanche of selling offers by the tired bears, analyst Hasnain Ali said.
But he said the talk of the new Rs20 billion market support fund to be financed by the banks and other financial institutions has raised hopes that the market may be back on the rails after Eidul Fitr holidays.
Another analyst Ahsan Mehanti said the index could fall by another 100 or odd points after the floor was removed as everyone would try to liquidate their holdings to return to the market after Eid when much of the dust raised on the issue would settle down.
Prominent gainers were led by Sapphire Fibre, up by Rs9.99 followed by Capital Asset Leasing, Habib ADM Sugar, Gharibwal Cement and Escort Bank, which were quoted higher by 64 paisa to Re1.
Losers were led by Pak Elektron and National Foods, off by Rs1.75 and Rs6.54. Engro Chemical, Crescent Steel, Tri-Pack Films and Royal Bank followed them, off by 23 paisa to Rs1.61.
Turnover figure fell further to 2.792m shares from the previous 5.934m shares as losers held a lead over the gainers at 19 to nine, with 86 shares holding onto their last levels.
Engro Chemical again came in for active support but fell on late selling, lower 23 paisa at Rs180.44 on 1.060m shares followed by Siddiqsons Tin, unchanged at Rs14.50 on 0.262m shares, Eye TV, unchanged at Rs42.20 on 0.188m shares, Telecard, also unchanged at Rs3.70 on 0.129m shares, Crescent Steel, lower by 39 paisa at Rs29.61 on 0.94m shares and Azgard Nine, unchanged at Rs30.53 on 0.62m shares.
Other actives were led by Pak Prime Fund, unchanged at Rs6.06 on 0.60m shares, B.R.R. Guardian Fund, unchanged at Rs5.60 on 0.58m shares and Network Micro Bank, easy by five paisa at Rs3.35 on 0.57m shares.
FORWARD COUNTER: Azgard Nine Textiles led the list of actives on the cleared list, unchanged at Rs30.79 on 5.906m shares followed by Engro Chemical, lower 40 paisa at Rs181 on 0.238m shares, PTCL, Sept contract rose by 51 paisa at Rs30.51 on 0.161m shares, while its October settlement was quoted unchanged at Rs31 on 0.98m shares.
National Bank October settlement was held unchanged at Rs93.86 on 0.95m shares.
DEFAULTER COMPANIES: Barring Al-Asif Sugar, which came in for active selling and fell by 76 paisa at Rs4.14 on 1,000 shares, all other three shares were held unchanged.