KARACHI, Feb 23: The equity values at the Karachi Stock Exchange dropped 2.7 per cent on Monday, shedding some of the 6.6 per cent gain witnessed by the market the previous week.

Analysts thought that there were several reasons for the investors to take profit at current levels, but most optimists were still visualising a rebound on the back of healthy upcoming corporate results.

The political concerns including a possible change in the political scene after the PML-N decision to support a mass demonstration planned by the lawyers next month to put pressure on President Asif Ali Zardari to reinstate the chief justice, weighed heavily on the mind of the investors.

Non-availability of leverage products and the review of CFS MK-II Committee to propose modification, kept the volume in check as speculators were absent from the market.

Analysts said that major commercial banks had unveiled healthy results, but sentiments seemed to overshadow fundamentals. The weekend news of a possible buy-out of a major foreign bank, Royal Bank of Scotland, was a happy augury for investors as it indicated a rejuvenation of the beleaguered bank by a strong local group.

Analyst Ahsan Mehanti listed political concern for long-term investment; limited activity of NIT-led State Enterprise Fund, law and order situation and uncertainty over government coalition in the upcoming Senate elections as major worries for investors.

As such buyers held onto their cash for the day. Top tier banking and oil and gas exploration stocks did witness cautious buying on dips, said analysts.

The KSE 100-share index fell by 118.83 points and finished at 5,850.26 points. Its junior partner, the KSE 30-share index lost 163.76 points and closed at 5,968.74 points. The KMI-30 index ended at 7,678.78 points with a decline by 196.33 points and the All Share index at 4,315.92, showing a drop of 82.47 points.

The ready market volume dipped to 114.2 million shares, as against 229.9 million shares traded on Friday last.

OGDC led the declining trend on Monday, which prompted banks, insurance, and cement stocks to follow suit.

But many dealers said that the earlier gains yet to be consolidated as the profit booking on Friday and Monday had put the equities at an attractive levels. They said that long-term investors could seize the opportunity to enter into blue chip stocks giving healthy yields as earlier they were unable due to the ‘upper cap’ early in the session.

Analysts noted that no less than 242 companies had scheduled their board meetings in the last four days of the current month notably among them being Berger Paints, Thal Limited, General Tyre, Bosicor, Nishat Chunian, JS Investments, Arif Habib Securities, Attock Refinery, Attock Petroleum and Al-Abbas Cement. And financial figures and distribution of dividends by many companies would be eagerly awaited.

More announcement were due in the first week of the next month, all of which analysts thought would keep investors in a buoyant mood and in turn further consolidate the market’s recent gains.

On Monday, declining issues were led by Unilever Foods and Unilever Pak, which reported the largest drop of Rs82.97 and Rs52.26. Others that suffered fall included National Refinery, Pakistan Petroleum, Dawood Hercules, Engro Chemicals, GlaxoSmithKline, Nestle Pakistan and Shezan.

Gainers were led by Attock Petroleum up by Rs9.43 and Ferozsons (Lab) higher by Rs6.58, United Bank gaining Rs1.15 and Lucky Cement up by Rs1.75. Several other scrips showed marginal gains.

Volume of business in the ready market stood at 114.2 million shares, which was far lower than the Friday’s 229.9 million shares. In all, 267 shares came up for trading, out of which 191 closed in the minus column, 62 in the plus while 14 remained unchanged.

OGDC down 78 paisa at Rs54.56 on 7.6 million shares, followed by NBP, dipped by Rs2.44 at Rs67.19 on 5.9 million shares, UBL gained Rs1.15 at Rs47.64 on 5.1 million shares, NIB Bank fell by 17 paisa at Rs4.87 on 5 million shares, Arif Habib Securities down by Rs1.14 at Rs26.14 on 4.9 million shares and Jahangir Siddiqui Co lower by Rs1.64 at Rs31.35 on 4.1 million shares. PTCL showed activity in 3.5 million shares down seven paisa at Rs15.49.

FORWARD COUNTER: OGDC was down by Rs1.52, ABL lower by Rs1.85, ANL lower by 53 paisa to Rs16.04. The volume on this country was 5,000 shares.

DEFAULTER COMPANIES: On the defaulters’ counter, Climax engineering gained Rs1.65 at Rs34.65 on 1,000 shares. Other gainers and losers were fractional. Crescent Jute, Central Forest and Quice Foods posted modest gains, while values of Latif Jute, Zeal Pak Cement and Indus Fruit suffered fractional losses.