KARACHI, July 31: The share market again turned lower on Thursday on hasty selling in leading oil shares triggered by reports of cap on margins of oil marketing companies and cut in deemed duty of refiners to 7.5 per cent from 10 per cent. The KSE 100-share index shed 269.44 points at 10,583.58.

The interesting feature of the new government move was that saving of Rs4 per litre on freezed margins will not be passed on to the general consumer but will be used to shore up the budget deficit, analysts said.

The market decline was further accelerated by reports that excise duty and sale tax on cement sector, which has by now assumed the role of a major exporter, will be further increased, followed by near-panic selling on this counter, they added.

The market has demonstrated more than twice that it could respond favourably to any positive news instantly as it did earlier, discounting negative impact on the share business in discount rate hike of one to 13 per cent, said a leading analyst.

He said there was a loud whispering in the market about the cap on margins of the oil marketing companies (OMCs) for the last couple of sessions but its details released on Wednesday seem to have sent shock waves among the oil giants, notably PSO, Shell Pakistan and Total followed by refiners.

According to analysts’ calculation, the negative impact on the profitability of the OMCs is expected to be around eight per cent.

The KSE 100-share index suffered a fall of 2.48 per cent or 269.44 points at 10,583.58 as compared to 10,953.02 a day earlier as all leading base shares fell under the lead of MCB Bank, National Bank, Engro Chemical and Arif Habib Securities.

The KSE 30-share index was off by 403.58 points or 3.25 per cent at 12,001.67.

“There can be technical flutters here and there, the basic fact is that any rally will prove short-lived as investors are not inclined to take long positions owing to political uncertainty and negative news from the FATA,” most analysts believe.

Low volume, either-way price changes on selective counters reflect that investors are just marking time apparently awaiting signals from the fund managers to resume normal activity, they said.

International Industries, which came out with a good payout (15 per cent cash, 20 per cent bonus and 25 per cent right), again came in for active support and rose further by Rs5.65 followed by Javedan Cement, up by Rs4.30.

Other good gainers included AKD Capital, United Brands, Pakistan Refinery and Clover Pakistan, up by Rs3.20 to 4. PSO and Shell Pakistan led the losers, off Rs19.65 and 19, respectively, followed by Arif Habib Securities and Arif Habib Ltd on post-dividend selling, JS & CO, Adamjee Insurance, EFU General, Attock Refinery, Attock Petroleum, Mari Gas, Pakistan Oilfields, Engro Chemical, Ferozsons Lab, Sitara Chemicals, Dawood Hercules, Packages and Shezan International, which were marked down by Rs7.03 to 18.53.

Trading volume was maintained around the overnight level of 116m shares but losers forced a strong lead over gainers at 230 to 53, with 12 shares holding on to the last levels.

Arif Habib Securities came in for active selling and led the list of actives, off Rs7.03 at Rs133.67 on 12m shares, followed by NIB Bank, lower by 87 paisa at Rs9.88 on 9m shares, National Bank, off Rs6.30 at Rs119.74 on 8m shares, Bank of Punjab, up by Rs1.50 at Rs31.63 also on 8m shares, OGDC, lower by Rs2.20 at Rs115.30 on 6m shares, United Bank, steady by five paisa at Rs78.80 on 5m shares and MCB Bank, off Rs7.25 at Rs271 on 3m shares. Engro Chemical followed them, lower by Rs10.99 at Rs208.96 on 3m shares, D G Khan Cement, off by Rs2.85 at Rs54.24 also on 3m shares and Bosicor Pakistan, lower one rupee at Rs10.04 on 3m shares.

FORWARD COUNTER: The provisionally listed Descon Oxychem made debut at the face value of Rs10 and steadily rose to close at Rs12.85, after having hit the session’s high of Rs15.90 on 4m shares followed by MCB Bank, off Rs2.84 at Rs272.99 on 2m shares, and OGDC, lower by Rs2.80 at Rs115.50 on 1m shares.

Arif Habib Securities followed them, sharply lower by Rs7.09 at Rs134.81 on 1m shares and National Bank, off Rs6.32 at Rs120.10 also on 1m shares.

DEFAULTER COs: Zeal Pak Cement came in for profit-selling at the overnight higher levels and fell by 11 paisa at Rs1.97 on 2.071m shares followed by Unity Modaraba, up six paisa at 90 paisa on 0.850m shares and Norrie Textiles, easy by 10 paisa at Rs1.75 on 0.345m shares.

DIVIDEND: Arif Habib Securities, cash 15 per cent plus bonus shares of 25 per cent.