The share prices fell across the board as selling pressure from financial institutions and brokerage houses ignited it whereas the government was still indecisive about the capital value tax (CTV) proposed in the Federal Budget for 2004-05.
The KSE-100 index declined 40 points, or 0.76 percent, to 5264.89 as compared with 5305.42 of Wednesday. The volume showed a fall, and finished at 248 million shares as compared with 332 million shares.
The market remained volatile as it moved in both columns, demonstrating the lack of confidence among the investors. Despite a positive start, the market failed to continue its overnight positive pattern, and tumbled immediately due to rumours regarding controversial statements by KSE members and developments on the issue of the CVT.
Tariq Hussain Khan, manager (research) at Live Securities, said the index fell after small investors started offloading their short positions, adding: "We expect that the market to change its direction in next session due to stability in trading volumes in sideboard scrips. Despite heavy selling in hours, analysts remain positive on the market, and expect to recover in days to come on account of expected positive outcome on the issue of CVT."
The market had weakened in a noticeable fashion in the last half an hour owing to the selling pressure by the punters and retailer to avoid putting weak holdings in COT, he said, adding as there were no notable leaders at any juncture of the trading the major pivotal like PSO, PTCL, Hubco, Pakistan Oilfields, OGDC, Engro and Fauji continued to decline, setting fresh session lows in their retreat.
Ahmed Ashraf of Akbarally Cassim, said the market stayed range-bound throughout the session, as people were unhappy over the CVT issue, and towards closing there was significant selling pressure as jittery investors sold their holdings since they were not comfortable in risking their gains on the federal finance minister's comments.
The badla decreased marginally by 0.25 billion rupees. The badla rates have moved up to approximately 15 percent as financiers have reduced their exposure in the badla market due to year-end consideration. The badla levels are largely unchanged as the overall market remains range bound and the activity is limited.
Fauji Cement fell 45 paisa to Rs 17.80 on a volume of 42 million shares, DG Khan Cement moved down to Rs 57.35 from Rs 58.75 on a trading 15.8 million shares, Bosicor Pak lost 55 paisa to Rs 23.55 on a turnover of 14 million shares, OGDCL fell 65 paisa to Rs 64 on deals of 11 million shares, and Pak PTA Ltd gained 55 paisa to Rs 17.25 as around 11 million shares changed hands.