Share prices at Karachi Stock Exchange (KSE) remained range bound on Tuesday as confusion over the COT hung over investors' mind, discouraging them to book fresh deals. The KSE-100 index recorded a decline of 3.73 points, or 0.05 percent, to 7301.97 against 7305.30 of Monday. The volume registered a paltry increase and finished at 97 million shares as compared with 69 million shares.
Tanvir Abid, head of research at Live Securities, said that newspaper reports that the government had asked the Shaukat Tarin Committee to submit deeper analysis to combat the financing issues at the equity market and look into other tools in vogue at the international markets disappointed the investors who were expecting announcements regarding restoration of carryover financing following reports in last Sunday's newspapers that the Tarin committee had recommended that badla or COT should be allowed.
The energy exploration giant, OGDC, posted 0.7 percent overall increase to Rs 103.35. PSO failed to sustain gains and lost Rs 1.20. Fauji gained Rs 2 on sanguine anticipation pertaining to its forthcoming financial results.
Hasnain Asghar from Aziz Fidahusein said that offloading by the weak holders depressed the market. Selling on the forward counter, switching from July to August counter, dampened the mood. The ongoing discussions to chalk out strategy for providing avenues for the leverage position holders are likely to propose an edited version of COT as was mentioned in the print media. Expectations of positive news from that counter did invite speculative buying in main stocks and the index managed a closing well above support level of 7290-7296.
Although the forward turnover for the second time in the history surpassed that of T+3 by 42 percent, it must be mentioned that at present both July and August counters are operating.
Technically, the index would continue to find major support around 7227-7233 while overhead resistance stays at 7370-7377.
Javaid Moon from Akbarally Cassim said that market performance was bearish with low volumes, but during the last hour the speculators came in, striking fresh deals, specially in PTCL, which helped build up a rally.
Honda Car announced Rs 4.66 EPS for the first quarter for the year 2005 and closed at almost at its upper limit.
PTCL showed a gain of 20 paisa to Rs 61.60 on a volume of 33 million shares; OGDC gained 70 paisa to Rs 103.35 on turnover of 10 million shares. NBP dropped 30 paisa to Rs 106.60 on trading of 7 million shares; PPL moved down to Rs 177.25 from Rs 180.50 on business of 6.5 million shares; and Fauji Cement rose five paisa to Rs 12.60 on deals of 3.6 million shares.
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