KARACHI, Dec 2: The share market on Tuesday gave an improved performance as a section of investors covered positions on select counters after it was officially made clear that removal of ‘floor’ from under the KSE 100-share index needed IMF nod.

Confirmation that the IMF had been approached by the KSE for getting its approval ended the uncertainty prevailing on the issue. The KSE sources said that the ‘floor’ may be lifted after Dec 15 as the Fund was likely to give its consent before that date.

The market was saved from a major shakeout in the backdrop of the city violence which claimed over 50 lives and caused heavy production losses, some analysts said.

Some of the leading investors covered positions on the perception that the lower levels will ensure higher capital gains after normal trading resumes.

“One may well ask what interest IMF has in the ‘floor’,” analyst Ashraf Zakaria said, adding “it wants to ensure that foreign investors who are trapped in the impasse suffer minimum losses after the ‘floor’ is removed”.

The general speculation is that prices of some of the leading shares could fall further by another 20 to 30 per cent owing to panic-selling in post-floor trading, he added.

Although there was no movement in the benchmark KSE 100-share index or its junior partner KSE 30-share index which remained static at 9,187.10 and 9,981.93, however a sense of optimism prevailed in the market as some of the investors took fresh positions both in low-priced and some high profile shares.

But on the other hand the KSE all-share index rose by 0.08 points at 6,641.75. Both the market capital and the volume figure also showed modest improvement at 2,820.456bn, up Rs36m and 0.197m shares as compared to previous 0.102m shares.

Under the agreement for $7.6 billion loan package, the IMF should have made provision for Rs7bn as its contribution to the proposed Rs20 billion market support fund as guarantee to bank loan, but there was no mention of the amount in the first tranche, analyst Hasnain Asghar said.

He said the other major participants including National Bank, EOBI and State Bank had contributed their share amounting to Rs12.5 billion and the IMF guarantee would raise it to Rs20 billion.

Plus signs dominated the trading as five shares rose, while one fell, with five remaining unchanged at the last levels, out of 11 actives.

Trading volume rose to 0.197m shares from the previous 0.103m shares owing to selective support.

Much of buying interest remained confined to undervalued shares, which ensure safe investment without losses, National Asset Leasing and Pakistan Commercial Leasing were notable among them, up four and one paisa at Rs0.44 and Rs0.56 on 159,000 and 28,500 shares respectively.

Other actives were led by Pak Datacom, sharply higher by Rs2.44 at Rs51.41 on 3,200 shares followed by Sitara Energy, higher by 97 paisa at Rs19.62 on 2,000 shares, Modaraba Al-Mali, off 50 paisa at Rs2.25 on 1,500 shares, Southern Electric, steady by five paisa at Rs3.65 on 1,000 shares and KESC, static at Rs3.80 on 500 shares.

Other actives were led by Chashma Sugar, unchanged at Rs5.70 on 500 shares, Millat Tractors, unchanged at Rs163.92 on 400 shares.

FORWARD COUNTER: Trading on this counter remained sluggish as investors were not inclined to make fresh forward deals apparently awaiting the removal of the ‘floor’ and its impact on the market.

DEFAULTER COMPANIES: Japan Power came in for stray support at the overnight level of Rs4.50 on 500 shares.