KARACHI, Oct 23: The trading activity on the share market on Thursday failed to pick up as investors were in two minds about the impact of the bailout package as it was essentially confined to support the seven public-sector securities, leaving the broader market at anybody’s guess.

The benchmark KSE 100-share index shed another 0.86 points at 9,182.88 and stood well above the floor, but its junior partner, the KSE 30-share index, remained under pressure throughout the session and suffered sharp fall of 34.62 points at 10,008.23 on selling in its leading base shares on a total turnover of 0.121m shares as compared to 0.124m shares a day earlier.

Opinions are divided over the immediate likely positive impact of the Rs50 billion package for the stock market, which is trading 40 per cent down against its pre-reaction level, but much will depend on the willingness of the general investor “whether or not to be in the market again”.

“The amount appears to be too small to absorb the floating stock even in the seven shares, not to speak of foreign sellers ready for a big kill,” analyst Tabish H. Rajabali observes.

“How the big ones behave will set the future direction of the market,” he added.

Much water had already flown under the bridge since the floor was put under the index after the failure of lower and upper circuit-breakers to arrest continued fall in share values as was reflected in a record fall in daily volumes to 0.120m shares and fractional changes in the index during the last two months.

But analyst Hasnain Asghar Ali thinks the package will certainly provide a smooth landing to the bourse after it resumes trading without the floor imposed on August 27.

“It will certainly halt fresh decline in the seven selected shares and provide an opportunity to investors how to behave in a free market sans any official checks,” he said.

Ahsan Mehanti said details about the investment criteria under the new rescue plan are lacking, leaving the question apparently to the NIT managers who will operate the fund.

“Whether or not other blue chips ruling at attractively lower prices will attract sympathetic support will determine the future direction of the market,” he added.

Some of the shares, which managed to put on fractional gain were led by Saritow Spinning and Sitara Energy, up by 90 paisa and Re1 followed by Mirza Sugar, Southern Electric, Al-Zamin Leasing, Habib ADM and Pak Datacom, which were quoted higher by five to 50 paisa.

Losers were led by Shifa International and Kohinoor Mills, off by Rs1.14 and Re1 followed by UDL Modaraba, Gharibwal Cement, English Leasing and Habib Metropolitan Bank, off 25 to 39 paisa.

Trading volume fell further to 0.121m shares from the previous 0.124m shares but gainers topped losers by seven to six, with 23 shares holding onto the last levels.

Habib-Metropolitan Bank led the list of actives, lower by 39 paisa at Rs37.40 on 0.25m shares, UDL Modaraba, easy by 30 paisa at Rs4.05 on 0.19m shares, Southern Electric, up seven paisa at Rs3.72 on 8,500 shares, Fidelity Leasing, unchanged at Rs4.20 on 8,000 shares, Sitara Energy, up Re1 at Rs20 on 7,000 shares, Ali Asghar Textiles, static at Rs1.25 on 5,000 shares and Nishat Chunian, unchanged at Rs12.78 also on 5,000 shares.

Al-Zamin Leasing followed them, up 10 paisa at Rs2.20 on 5,000 shares, Kohinoor Mills, off Re1 at Rs16.86 also on 5,000 shares and Mirza Sugar, steady by five paisa at Rs1.85 on 4,500 shares.

DEFAULTER COMPANIES: Indus Polyester was the only company, which came in for stray support at the unchanged rate of 74 paisa and accounted for 500 shares.

DIVIDEND: KSB Fund, interim Rs3 (30 per cent), Al-Meezan Islamic Income Fund, Rs1.27 per unit.