KARACHI, Nov 10: Trading on the stock market resumed on an insipid note on Monday in the absence of an official word on early removal of lock under the Karachi Stock Exchange (KSE) 100-share index, and as a massive money market scandal did not allow normal activity on any of the counters.

Analysts said the share market would have received a big jolt in the backdrop of arrests of leading money changers on charges of alleged illegal dollar transfers to foreign countries but for the price freeze under the lock on the KSE 100-share index.The big question is, however, being debated among stock brokers, some of them having stake in the US dollar, is whether or not the current drive against money laundering will end the dollarization era in the country, they said.

A formidable section of leading investors who had built-up long positions in the US dollar followed by its sharp rise from Rs66 to 84 after having sold some blue chips are a bit worried after the arrest and sealing of selling outlets of some of leading currency dealers, analysts said.

“However, the arrest of some top money changers on alleged transfer of huge amounts of the dollars to various countries did not have an immediate negative impact on the stock trading, it will take its toll in the coming sessions,” they said, adding, “many stock players have a stake in the US currency and are worried over the future developments on the issue after the probe.”

But some others predict that the arrest of the top money changers may cause huge losses to some of the big investors as the ruling rate of the dollar may fall to its pre-reaction level after the formal reopening of the currency markets.

On the foreign aid front, most of reports were positive indicating that the IMF has considerably eased tough conditions on its bail-out package of $5 billion and an agreement may be signed possibly by the next week, market sources said.

But the top five participants of the market support fund are said to be a bit reluctant to give Rs5 billion each to the proposed Rs20 billion fund owing to prevailing conditions on the stock market and feeble chances of an immediate recovery amid fears of fresh losses, they added.

As a result, barring KSE all share index, which posted a fractional fall of 0.12 points at 6,639.01, all others, including the benchmark 100-share index, were again held static at the last levels of 9,183.14, 100,03.99 and 11,224.18, respectively.

Price changes were fractional, barring Crescent Sugar, which rose by one rupee, while Pakistan Commercial Leasing, Southern Electric, Taxila Engineering and Saritow Spinning were marked up by one to 40 paisa, respectively. Losers were led by National Asset Leasing, Al-Zamin Leasing, Gharibwal Cement, Sitara Energy and Habib-ADM Sugar, off by one paisa to 67 paisa in that order.

Trading volume showed a modest rise at 0.124m shares from the previous 78,500 shares as gainers and losers were evenly matched at five, with 11 shares holding on to the last levels.

Gharibwal Cement led the list of actives, easy by 18 paisa at Rs17 on 38,500 shares, followed by National Asset Leasing, lower by one paisa at 0.40 on 25,500 shares, Indus Polyester, static at Rs0.74 on 20,000 shares, Nimir Resins, static at Rs5.05 on 10,000 shares, East-West Life Insurance, unchanged at Rs7 on 6,500 shares and Paramount Modaraba, static at Rs9.25 on 4,000 shares.

They were followed by Saritow Spinning, higher by one rupee at Rs2.13 on 3,000 shares, Al-Zamin Leasing, lower 19 paisa at Rs1.80 on 2,500 shares, Bank Al-Habib, unchanged at Rs34.14 on 2,000 shares and Southern Electric, up six paisa at Rs3.66 also on 2,000 shares.

DEFAULTER COs: Mukhtar Textiles and Latif Jute came in for stray support at the previous rate of Rs0.53 and 7.10 on 1,500 and 500 shares, respectively. But Taxila Engineering on the other hand came in for modest support and rose by 32 paisa at Rs4.77 on 1,500 shares.