KARACHI, April 8: Stocks turned mixed on Tuesday as investors had an overview of the CFS Mk-II, which made its debut a day earlier, ensuring enormous funds for the prospective investors in the share business, analysts said.

Incidentally, it coincided with the market’s consolidation phase as investors were worried over the negative fallout of the ugly incident of manhandling of former Sindh chief minister in the Sindh Assembly leading to the boycott of Muttahida Qaumi Movement from the proceedings amid fears of political polarisation.The KSE 100-share index showed a modest rise of 4.33 points at 15,474.07 after at one stage having hit the session’s high at 15,496.74. Its junior partner also rose by 15.71 points at 18,886.86.

The pause was also attributed to introduction of CFS Mk-II, from April 7, under which investors could borrow up to Rs85 billion without any cash deposit doing away with the previous CFS (Continuous Funding System) ceiling of Rs55 billion.

When fully operative, the new funding system will significantly boost stock trading owing to the availability of enormous funds to the prospective investors, floor brokers said.

“No one could precisely say that the index is in an indecisive frame of mind to go beyond the barrier of 15,500 points,” analyst Faisal A. Rajabali says. “It has more than one reason to explore new highs just in no time.”

Upper locks in some of the leading shares, notably Engro Chemicals, Arif Habib Securities, followed by renewed price flare-up may not necessarily reflect the presence of strong foreign buying but it is there in various forms, he said.

“After having broken the barrier of 15,500, it was poised to go beyond it but Monday’s ugly event in the Sindh Assembly halted it upward drive though temporarily,” another analyst Hasnain Asghar Ali said.

But dominating opinion is that there is nothing wrong in the background news despite a loud whispering about taxing the share business as investors continued to make heavy covering purchases in some of the leading shares.

Dividend announcements for the financial year ended March 31, 2008 are just around and they could take the index to new highs aided by higher payout leading to strong speculative support, some others said.

Leading gainers were led by Pakistan Resource Co, which announced a record bonus shares at the rate of 455.55 per cent, up with another Rs23.85 followed by AKD Capital, higher by Rs36. Other prominent gainers, included Arif Habib Securities, Central Insurance, Dawood Lawrence, PSO, Mari Gas, Pakistan Services, Engro Chemical, Dawood Hercules, and Habib Insurance, which were quoted higher by Rs6 to Rs18.90.

Unilever Pakistan and EFU Life Assurance were leading among the losers, off by Rs18.90 and Rs19, respectively, followed by First Capital Securities, Exide Pakistan, Lakson Tobacco, and EFU General, off by Rs5.35 to Rs14.

Traded volume rose to 349m shares from the previous 255m shares but losers held a modest lead over the gainers at 156 to 136, with 50 shares holding on to the last levels.

D.G. Khan Cement led the list of actives, up by Rs2.15 at Rs118.60 on 61m shares, followed by Arif Habib Securities, sharply higher by Rs7.70 at Rs196.30 on 44m shares, Lucky Cement, up Rs1.40 at Rs145.50 on 23m shares, Engro Chemical, higher by Rs10.50 at Rs357.90 on 19m shares, OGDC, firm by 60 paisa at Rs138.10 on 11m shares, Pakistan Oilfields, higher by Rs5.60 at Rs375.50 on 10m shares and Fauji Fertiliser Bin Qasim, lower by 65 paisa at Rs45.20 on 10m shares.

Other actives were led by Nishat Mills, up 50 paisa at Rs130 on 27m shares, Azgard Nine, off Rs4 at Rs76.75 15m shares and Pervez Ahmed Securities, lower by Rs2.70 at Rs77.50 on 9m shares.

FORWARD COUNTER: Active trading was witnessed on the cleared list as was reflected by sharp increase in the turnover figure, which soared to 91.042m shares from 79 shares, what the dealers called, the magic of CFS Mk-2, which was effective since April 7, ensuring enormous funding. D.G. Khan Cement also led the list of actives on the cleared list and was marked up by Rs2 at Rs119 on 15m shares, Nishat Mills, followed it, steady by 55 paisa at Rs130.75 on 10m shares and Arif Habib Securities, higher by Rs6.70 also on 10m shares.