KARACHI, Jan 21: The share market on Wednesday failed to extend the overnight improvement as follow-up support turned shy followed by a spate of negative news, notably the World Bank’s no to release funds owing to downgrading of Pakistan foreign credit rating and some of the unresolved outstanding CFS positions.

The KSE 100-share index shed another 121.80 points or 2.32 per cent at 5,136.48.The perceptions -- that President Obama’s future global policy guidelines after taking oath could create a lot of optimism among the investors -- were neglected despite the fact that they have some good points also as far as the Muslim world is concerned, most brokers believe.

The market decline was again led by the banking sector followed by reports of fresh financial troubles in the western banking system as some of the local banks are their subsidiaries, floor brokers said.

MCB, Habib Bank, Pakistan Oilfields, leading insurance and food shares, notably Rafhan Maize and some others.

Even the reported fund buying, which was visible on some of the blue chip counters at the lower levels failed to change the market sentiment as it was, too, small to generate sympathetic covering purchases from other quarters alone to realise quick capital gains, some analysts said.

“The liquidity crunch appears to be one of the chief reasons behind the market’s continued sluggishness, they said adding: “Borrowed money under the CFS is now, too, expensive to injecting in the system in a falling market.”

Both the KSE 100-share and 30-share indexes shed 121.80 and 152.04 points at 5,138.48 and 4,782.97, respectively, and so did KSE all shares index at 3,870.97, off 89.43 or 2.26 per cent.

Minus signs again dominated the list under the lead of Wyeth Pakistan, Rafhan Maize, and Nestle Pakistan, off Rs117.32 and 87.52 and 57.16 followed by National Refinery, Al-Ghazi Tractors, Engro Chemicals, Sitara Chemical, Tri Pack films, EFU Life and Pakistan Services, off Rs5.38 to 12.34.

Gainers were led by Siemens Pakistan and Pakistan Petroleum, which were quoted higher by Rs38 and 6.17 followed by Al-Noor Sugar, Sui Northern Gas, International Industries, Security Papers, Fauji Fertiliser Bin Qasim, Exide Battery, Kot Addu Power, PECO, Packages and Millat Tractors, which rose by one rupee to 5.17.

Trading volume again shrank below the 100m share mark at 90.769m shares from the previous 143m shares as losers held a strong lead over the gainers at 198 to 60, with 12 shares holding on to the last levels.

OGDC came in for fresh selling and was quoted lower by Rs2.17 at 44.29 on 9m shares, followed by National Bank, easy by Rs2.73 at Rs51.94 on 7m shares, PTCL, off 58 paisa at Rs12.96 on 6m shares, Hub-Power, lower 71 paisa at Rs14.77 on 4m shares, NIB Bank, up nine paisa at Rs4.85 also on 4m shares, and WorldCall Telecom, easy 19 paisa at Rs3.32 on 3m shares.

TRG Pakistan followed them, lower by 22 paisa at Rs2.21 on 3m shares, Bosicor Pakistan, easy by 42 paisa at Rs6.34 also on 3m shares and Fauji Fertiliser, lower 27 paisa at Rs73.27 on 3m shares.

FORWARD COUNTER: Speculative issues on the forward counter remained under pressure on selling triggered by reports of some problems on the CFS counter, including settlement issues.

However, price decline was modest as compared to previous sessions and was confined to PSO, Pakistan Oilfields, MCB, and Adamjee Insurance, which suffered fresh fall ranging from Rs2.85 to 4.85 but without any turnover.

DEFAULTER COUNTER: Zeal Pakistan again led the list of actives on fresh selling, easy by one paisa at Rs0.47 on 4.192m shares followed by Japan Power, lower 20 paisa at Rs1.40 on 0.330m shares, and Khurshid Spinning, up 35 paisa at Rs0.75 on 50,000 shares.

Unity Modaraba followed them, up four paisa at Rs0.30 on 33,000 shares, followed by Hydery Construction, easy by 13 paisa at Rs0.54 on 22,000 shares. Others were modestly traded mostly on the lower side.

Market at a glance