KARACHI, Feb 4: Trading on the stock market on Monday resumed on a higher note, followed by active early short-covering on selected counters, but late profit-selling at the higher levels allowed it to close with clipped gains.

The KSE 100-share index rose by 17.47 points at 13,991.88.

Some rethinking on the new monetary policy and its likely impact on the share market during the next couple of weeks was again debated by analysts but opinions were divided on the issue.

The next couple of sessions will show how general investors react to them.

The brisk activity in the share of Muslim Commercial Bank (MCB), however, highlighted the trading as a section of local investors followed the lead of foreign buyers and for good reasons too amid rumours of higher payouts and bonus shares, analysts said. “Essentially appears to be GDR-linked buying euphoria in it, actively followed by the locals as no one was inclined to miss riding the bandwagon,” they said. “All were willing buyers for its share well above Rs400.”

An idea of speculative support in MCB may well be had from the one fact that at one stage it pushed the KSE 100-share index well above the barrier of 14,000 at 14,052 point, contributing 75 points alone, a leading analyst Hasnain Asghar Ali said, adding it has the largest weightage of 11 per cent in the index.

After hitting the session’s high at Rs408.75, it closed at Rs404, up by 12.60 points on seven million shares.

It finally finished with a clipped gain of 17.47 points at 13,991.41, as compared to 13,974.41 at the last weekend, reflecting the strength of leading base shares. But on the other hand, KSE free-float index rose by 93.90 points at 16,759.93 points. Other leading base shares, notably in oil, cement and fertiliser also performed credibly well, pulling apparently out the market from the negative fallout of the new monetary policy, which has added significantly to the cost of borrowing money.

“The tight monetary policy announced late last week may not be a double-edged weapon, but it can effect the share business in more than one ways, notably in terms of daily volumes,” analyst Ashraf Zakaria said, adding “many will think twice before opting for borrowed money keeping in mind whether or not the return on it ensures profit margins.”

The market seems to have come to terms with incidents of suicide attacks and seldom reacts that way, although the number of general investors is gradually reducing, some others said.

They said market talk of higher dividend during the current and next month, may not allow the market to fall below the current levels, but how would it react to post-election scenario is anybody’s guess.

Among the gainers, JS Global and Bata Pakistan were leading up by Rs24.30 and 29.40, followed by United Sugar, Sanofie-Aventis, BOC Pakistan, Pakistan Refinery, Shell Gas, Unilever, Pakistan and AKD Capital, which posted gains, ranging from Rs8 to 23.

Prominent losers were led by Nestle Pakistan and National Foods, off by Rs10.90 and 16.00 respectively. They were followed by National Refinery, Clariant Pakistan, Mitchell’s Farms, Lakson Tobacco, Central Insurance and Treet Corporation, off by Rs4.00 to 9.45.

Trading volume showed modest rise at 154 million shares, from the last weekend’s 130m shares, but losers held an active lead over gainers at 176 to 151, with 38 shares holding onto the last levels.

Dewan Salman led the list of actives, up Re1 at Rs9.15 on 16m shares, followed by Arif Habib Securities, up Rs2.70 at Rs177.85 on 11m shares, MCB, sharply higher by Rs12.60 at Rs404.50 on 7m shares, Bank of Punjab, off Rs2.05 at Rs90.65 also on 7m shares, D G Khan Cement, up by Rs1.60 at Rs94.00 on 5m shares, PSO, up 45 paisa at Rs440.50 on 4m shares and BankIslami Pakistan, firm by 25 paisa at Rs19 also four million shares.

Other actives included Sitara Peroxide, lower by Rs1.50 at Rs61 on 4m shares, and Dost Steels, easy by 30 paisa at Rs34.50 also on 4m shares.

FORWARD COUNTER: MCB led the list of actives on this counter, higher by Rs12 at Rs403.50 on 7m shares, followed by Dewan Salman, up Re1 at Rs9.20 on 4m shares and Arif Habib Bank, lower by 15 paisa at Rs30.05 on 3m shares.

PSO followed them, off Re1 at Rs440.50 on 3m shares and Bank of Punjab, lower by Rs1.85 at Rs91.55 also on 3m shares.

DEFAULTER COs: Zeal Pak Cement came in for active short-covering at the lower levels and was marked up by 10 paisa at Rs4.55 on 2.502m shares, followed by Norrie Textiles, unchanged at Rs2.05 on 0.341m shares and Redco Textiles, easy by 25 paisa at Rs2.75 on 0.199m shares.

Pangrio Sugar followed them, lower by Rs1.30 at Rs25.30 on 0.164m shares, and Unity Modaraba, unchanged at Rs1.25 on 0.137m shares.

DIVIDEND: East-West Insurance, interim bonus shares at the rate of 17 per cent, and Metropolitan Life Insurance interim, cash 10 per cent.