KARACHI, June 17: Stocks on Thursday remained under pressure as investors were not inclined to take long positions on any of the counters apparently awaiting positive outcome of Islamabad parleys on the Capital Value Tax (CVT) issue.
Some of the institutional traders were, however, active on selected counters and managed to limit the market decline after covering positions at the lower levels in the indexed shares. Others indulged in alternate bouts of buying and selling as no one was inclined to hold long position.
The KSE 100-share index rose by 14 points at 5,319.19 in early trading ahead of the meeting between KSE chairman Arif Habib with Finance Minister Shaukat Aziz and expectations of positive announcement from Islamabad on the CVT but the details of the meeting did not reach till the close.
It, therefore, fell with an extended decline of 40.53 points at 5,264.89, decisively breaking the barrier of 5,300 as leading base shares came in for renewed selling after mid-session.
Traded volume also fell to a low ebb as investors were not inclined to go beyond certain limits until the CVT issue is resolved. Traded value of the shares also shrank by Rs5 billion at Rs10 billion from Rs15 billion a day earlier.
"The CVT issue has taken away at least for the near-term the bullish steam out of the market", one broker fears "the settlement appears to be a bit difficult as revenue perceptions of the contenders are poles apart".
The bourses chief have offered to add Rs1.5 billion to the exchequer in various forms of taxes but the CBR demands at least Rs5 billion. How the wide gap will be bridged is apparently being discussed with the KSE chief.
The market could shed another 40 to 50 points on Friday if there is no positive official statement on the CVT issue but unlike the previous sessions there could be a lot of institutional short-covering at the dips.
"No one could deny the fact that negative factors such as the CVT could pull the market down at this stage", analysts said adding "the inspired selling will assume the role of bull buying after the small savers emptied their kitty".
Prominent gainers were led by Sapphire Fibre, Unilever Pakistan, Al-Ghazi Tractors, IGI Insurance, Nestle MilkPak, Treet Corporation and Fateh Textiles, up by Rs4.50 to Rs29, while losses on the other hand were mostly fractional reflecting lack of support rather than any large selling from any quarter.
Other good gainers included Arif Habib Securities, Fazal Cloth, Babri Cotton, Nishat Chunian, Reckitt and Benckiser and Al-Ghazi Tractors, higher by Rs3 to Rs5.25.
Leading shares, which suffered fall included PSO, Pakistan Cables, Glaxo-SKF, Aventis, Gatron Industries, Javed Omer and Lakson Tobacco, off Rs5.10 to Rs8.50. Adamjee Insurance, Pakistan Oilfileds, Exide Pakistan, also fell by Rs3.30 to Rs3.80.
Out of the total 418 actives, 214 shares fell, while 163 rose, with 41 shares holding on to the last levels amid thin trading. Fauji Cement was again actively traded, lower 45 paisa at Rs17.80 on 42m shares followed by D.G.Khan Cement, off Rs1.40 at Rs57.35 on 16m shares, Bosicor Pakistan, lower 55 paisa at Rs23.55 on 14m shares, OGDC, off 65 paisa at Rs64 on 12m shares, Pak PTA, up by 55 paisa at Rs17.25 also on 12m shares and National Bank, off 90 paisa at Rs61.90 on 7m shares.
Other actives were led by Nimir Chemicals, lower 15 paisa on 10m shares, Lucky Cement, off Rs1.40 on 8m shares, ICI Pakistan, easy 20 paisa on 7m shares and Pakistan Oilfields, off Rs3.30 also on 7m shares.
FORWARD COUNTER: PSO came in for active selling at the higher levels and fell by Rs6.05 at Rs254.05 on 3m shares followed by Pak PTA, up by 45 paisa at Rs17.15 on 4m shares, Hub-Power, lower by 10 paisa at Rs32 on 2m shares, ICI Pakistan, up by 30 paisa at Rs84.35 on 1m shares and F.F.Bin Qasim, lower by 40 paisa at Rs19.45 also on 1m shares.
DEFAULTER COMPANIES: Activity on this counter also remained slow amid slack demand and prices generally fell where changed. Crescent Spinning, up by five paisa at Rs6.75 on 0.412m shares followed by Asset Investment Bank, lower by 40 paisa at Rs7.95 on 0.397m shares and Biafo Industries, easy 15 paisa at Rs16.40 on 0.373m shares.
BOARD MEETINGS: Pakistan Industrial & Commercial Leasing, on June 18, Hamid Textiles, on June 22, Exide Pakistan and Bosicor Pakistan on June 23, Atlas Honda and AKD Securities, on June 24 and Siemens Pakistan On June 26.