KARACHI, Aug 16: Trading on the stock market on Monday resumed on an insipid note as leading investors were not inclined to make fresh commitments in the absence of fresh guiding factors.
Trading volume figure fell below the 100m-mark, leading to one of the dullest sessions in the recent past, sending shock waves among the jobbers and day traders as most of them were deprived of their daily earnings in listless activity.
There could be more than one reasons behind the continued sluggishness, immediate appears to be investor concerns about Aug 18 elections and the post-election scenario. The KSE 100-share index shed another 6.15 points at 5,329.67 as compared to 5,335.82 at the last weekend, reflecting the weakness of leading shares.
The absence of leading investors, notably institutional traders was also well reflected in the falling volume figures, although all the leading shares, notably in the cement sector are ripe for a technical correction.
Some of the investors claim it is "pre-election sluggishness owing to fears of violence in the backdrop of a suicide attack on the prime minister-designate in an election meeting".
But some others say it was the belated investor thinking on the Capital Value Tax (CVT) and its negative impact on daily stock trading. However, analysts are worried over the developing situation after the fall of daily turnover figure equivalent to a single-session tally of an active scrip.
"I think the post-election scenario could be different from the prevailing one as by that time investors would have a fair idea about the shape of things to come. Opening was a bit promising as investors picked up some of the leading stocks having a potential of capital gains but as there were no signs of follow-up support the initial rally faltered, brokers said.
Some analysts predict, the market could be undergone significant changes by Wednesday as by that time uncertainties associated with the election will be over and investors will have a clear idea of the future share market outlook.
Leading gainers were led by Arif Habib Securities, Bengal Fibre, Gatron Industries, HinoPak Motors, Pak-Suzuki, Atlas Battery, Colgate Pakistan, National Foods, Sheezan International, Atlas Honda and Aventis, which posted gains ranging from Rs4.50 to Rs14.90.
Losers were led by Clover Pakistan, Millat Tractors, Jahangir Siddiqui Co and Bank, EFU Life and Lakson Tobacco, off Rs3 to Rs13.75. Trading volume fell to 79m shares as compared to 106m shares at the weekend session as losers maintained a strong lead over the gainers at 187 to 100, with 34 shares holding on to the last levels.
D.G.Khan Cement led the list of actives, off 75 at Rs56 on 11m shares followed by Lucky Cement, lower 20 paisa at Rs38.55 on 8m shares, OGDC, up 20 paisa at Rs65.50 also on 8m shares, Fauji Cement, easy 40 paisa at Rs15.85 on 5m shares, Maple Leaf Cement, lower 25 paisa at Rs38.10 on 5m shares, National Bank, easy 25 paisa at Rs72 on 3m shares and Askari Bank, off 80 paisa at Rs75.50 on 4m shares.
Other actives were led by MCB, easy 25 paisa on 3m shares, Bank of Punjab, lower 10 paisa also on 3m shares and F.F.Bin Qasim, off 25 paisa on 2m shares.
FORWARD COUNTER: The notable feature was that Pakistan Strategic Fund made debut at its face value of Rs10 and ended at this rate after hitting the lowest and the highest for the day at Rs9.80 and Rs10.45 on 3m shares.
Pakistan Petroleum on the other hand came in for active bouts of buying and selling but ended unchanged at Rs107.65 after hitting the day's highest and lowest at Rs108.50 and Rs105.35 respectively. D.G.Khan Cement fell by 65 paisa at Rs56.25 on 3m shares, while OGDC rose by 15 paisa at Rs65.65 on 2m shares followed by Lucky Cement, easy 35 paisa at Rs38.65 on 1m shares.
DEFAULTER COS: Crescent-Standard Bank again came in for modest support at the previous rate of Rs10.75 on 0.184m shares followed by Uqab Breding, higher by 80 paisa at Rs4.90 on 0.155m shares and Dandot Cement, easy 15 paisa at Rs9.25 on 0.112m shares.
DIVIDEND: BSJS Balanced Fund, bonus shares 12.5 per cent, Fourth ICP Mutual Fund, bonus shares 25 per cent, right shares 100 per cent at a premium of Rs10, ABAMCO Stock Market Fund, bonus 25 per cent, right shares 50 per cent at par, ABAMCO Capital Fund, bonus 20 per cent and right shares 50 per cent at a premium of Rs10.
BOARD MEETINGS: Glaxo-SKF, International Multi Leasing, Pakistan Reinsurance and Maple Leaf Cement on Aug 20, KASB Bank, on Aug 21 and National Refinery on Aug 30.