KARACHI, Nov 28: The single-session trading volume on Friday hit a new all-time low at 3,700 shares as investors withdrew to sidelines amid rumours that the IMF did not allow removal of the ‘floor’ until the maiden tranche of $3.1 billion stabilises the foreign exchange reserves position at a sustainable level.
The previous low was recorded at 5,800 shares on Oct 14, 2008.
Some leading analysts said it may also be the belated reaction to the Mumbai carnage and fear that blame game could have fallout on the Indo-Pakistan diplomatic relations.
However, they said that the rumoured IMF ban on the removal of the ‘floor’ from under the
KSE 100-share index may not be one of the conditionalities linked to the approval of $7.6 billion credit line and some vested interest may have circulated it.
But some others said no official word from the KSE board on lifting of the ‘floor’, which met on Thursday, appeared to be the chief reason behind the withdrawal of investors from the arena.
“Investors have been expecting that the floor may go from Dec 1, but official strong warning that the government will decide the issue at an appropriate time and there should be no campaign like whispering by any quarter,” they said.
The general perception is that the ‘floor’ is not being removed to protect the interest of the foreign investors as prices could further fall by 15 to 20 per cent, they added.
“The steep decline in the turnover figure could well lead to fresh records both on the price changes and the range of stocks, which would come for trading,” stockbrokers said, adding “investors have to operate within the ‘floor’ confines until the appropriate time comes,” said a leading analyst.
But those investors who have the courage to resume normal trading have the option to push selected stocks as higher as they could as the fall below the capped level is ruled out, he said.
With the exception of the KSE all-share index that showed a fresh fractional decline of 0.09 points at 6,641.61, all other indices including the benchmark 100-share remained glued to their previous levels.
Price changes were fractional. While Pak Datacom rose by 50 paisa, while Al-Asif Sugar, Gharibwal Cement and M. Farooq Textiles suffered fall from 11 to 20 paisa.Turnover figure shrank to a new low of only 3,700 shares as losers held a lead over the gainers at three to one, with two shares remained unchanged.
Millat Tractors came in for stray support at the previous rate of Rs163.92 on 2,000 shares, followed by Muhammad Farooq Textiles, lower 20 paisa at Rs2 on 500 shares, Al-Asif Sugar, easy by 11 paisa at Rs4.14 also on 500 shares, Gharibwal Cement, lower 16 paisa at Rs17.47 on 500 shares, Pak Datacom, up 50 paisa at Rs47.70 on 100 shares and Kot Addu Power, static at Rs37.80 also on 100 shares.
FUTURES COUNTER: There was a relative quiet on this counter as no shares came in for trading perhaps because of weekend considerations.
DEFAULTER COMPANIES: The activity on this counter remained dull barring Al-Asif Sugar which came in for stray selling and fell by 11 paisa at Rs4.14 on 500 shares, no other shares came in for even a modest support or selling.