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RECORDER REPORT

KARACHI: The stock market on Monday showed divergent trends because of investors' concern about the reaction to the April 6 verdict in the trial of former prime minister Nawaz Sharif. The volume was down as genuine investors closed down their shutters.

The KSE-100 index fell by 2.00 points or 0.10 percent to 1997.70 from 1999.70 of Friday. The volume amounted to 179.047 million shares as against 264.452 million shares of Friday. The market capitalisation moved up to Rs 504.593 billion from Rs 504.335 billion.

The former prime minister, his brother Shahbaz Sharif and five aides have been tried attempted murder, kidnapping and hijacking in the Anti-Terrorism Court. They are charged with trying to prevent a PIA plane carrying Gen. Pervez Musharraf from landing in Karachi on Oct. 12.

The trading opened on a positive nod as the IMF mission was scheduled to arrive in Pakistan to hold talks. The economic managers believed that the government would get the contracted loan from the agency to ease the economy. But selling pressure dictated the market proceedings and the index closed on negative note. The prices of most of the issues moved in a narrow band which showed that genuine investors had adopted a cautious approach.

An analyst from Westminster Eastern Services said that the bulls were active in the rings in the first trading session encouraged by the expected visit of IMF delegation to Pakistan, and the index rose by almost 21 points. However, in the later session, the market witnessed selling pressure initiated by profit hunters who offloaded their holdings in the absence of support from the long-term investors.

Technically, the market was still moving in a bullish band. The upcoming verdict on April 6 kept the investors away. Hence the market closed on a weak note after profiteers had realised gains on short-term portfolio in the later session of the day.

Nadeem-ud-din of AHR Securities said that despite steady opening and remaining most of the time in the plus zone, the market closed with a minus sign.

However, the index started to fall in the second session, when weak holders started booking profits, which apparently was the right decision on account of good profits available. He added market men were cautious and were reluctant to have over-exposed positions till the decision in the plane case. Another factor which led to selling was the rumour that the plane case decision had been delayed.

PTCL on a trading of 38.829 million shares moved to Rs 32.80 from Rs 32.85, ICI on a trading of 33.394 million shares closed at Rs 18.25, i.e. lower by five paisa, FFC Jordan on a turnover of 23.011 million shares recorded a rise of 20 paisa to Rs 15.05, Hub Power slipped by five paisa to Rs 28.05 as nearly 12.010 million shares changed hands and PSO on a volume of 9.952 million shares recorded a decline of Rs 1.20 to Rs 243.40.