KARACHI, Oct 15: Trading on the stock market on Wednesday failed to pick up as investors again kept to the sidelines despite the fact that their major demand about the removal of the ‘floor’ from Oct 27 was met by the Securities and Exchange Commission of Pakistan (SECP).

For the second session in a row, the KSE 100-share index stayed unchanged at the previous level of 9,184.24 but well above its official cap and so did others barring the all-share index, which fell 0.18 points at 6,641.59 points.

Trading volume fell below half a million shares, reflecting the general sluggishness.

Whether or not the market will resume its normal activity after the bottom cap is removed, of course, with five per cent either-way circuit breakers to avert any major sell-off is anybody’s guess, said a broker.

But indications are that the terribly derailed market could take some more time to be fully normal after the inflow of financial support led by the NIT market support fund.

Some of the leveraged investors still holing long unsettled positions were said to be not happy on the extension of the CFS MK-2 contract period from 22 to 44 days, while all the transactions carried out on Oct 10 and 14 had been declared void for smooth operational efficiency of the market.

Opinions were divided over the future trend of the market.

Some predict it could bounce back as warranted by the attractively lower levels reached by most of the leading blue chips during the long recession.

But some others think the revival of demand is essentially linked to positive conditions on the economic and political front aided by the law and order situation as the badly mauled investors may have to think twice before re-entering the market.

“Massive amounts of liquid cash have already found more than one safe havens for good reasons too,” said analyst Ahsan Mehanti, adding “the lead must come from the official institutions”.

The rupee plunged to a new low on Wednesday and investors are finding it a safe haven despite the fact its own viability is still at a stake, he added.

Analyst Tabish H. Rajabali thinks investors may like to re-enter the market after the NIT or the proposed Rs20 market support fund starts operation, but so far no indications from any of them to resume normal activity at a time when the small savers need it.

Unlike the previous sessions, the price changes on the ready counter were mostly fractional as some of the liquid shares post modest rises, the highest being 60 paisa each in Baba Farid Sugar and Al-Khair Gadoon followed by Fidelity Leasing, Wah Noble, Sitara Energy, Fecto Sugar and Al-Noor Modaraba, which quoted higher by 12 to 50 paisa.

On the lower side, most of the shares stayed unchanged barring Capital Asset Leasing, UDL Modaraba and Gharibwal Cement, off by 10 to 49 paisa.

Trading volume fell below a half million shares at 0.499m shares reflecting the absence of buyers, but gainers held a modest lead over the losers at eight to three, with 54 shares holding onto the last levels.

Some of the undervalued shares came in for modest alternate bouts of buying and selling under the lead of Cherat Cement, static at Rs15.90 on 0.152m shares followed by Southern Electric also static at Rs3.90 on 0.045m shares, Al-Khair Gadoon, up by 60 paisa at Rs7.10 on 0.041m shares, Nimir Chemicals, static at Rs2.13 on 0.027m shares, Mari Gas, unchanged at Rs134.58 on 0.021m shares and Pak Strat Fund, static at Rs5.28 on 0.20m shares.Other actives were by Fidelity Leasing, up 12 paisa at Rs4.25 on 0.015m shares, Al-Meezan Fund, static at Rs8 on 0.015m shares, Al-Zamin Leasing, unchanged at Rs2.10 on 0.012m shares and Standard Chartered Bank, unchanged at Rs10.20 also on 0.012m shares.

DEFAULTER COMPANIES: The shares of five companies came in for trading on this counter, but all were held unchanged barring National Asset Leasing, which was quoted higher by two paisa at Rs0.42 on 10,000 shares.

Elahi Cotton, Mukhtar Textiles, Indus Polyester and Zeal-Pak Cement were held unchanged at Rs5.25, Rs0.53 and Rs0.74 and Rs1.16 respectively on modest volumes.