KARACHI, Nov 12: The frozen share market on Wednesday did not show any reaction to the two per cent hike in the interest rate to 15 per cent as investors stayed out apparently awaiting the removal of the floor from under the KSE 100-share index.

Analysts said no one could deny the fact that the borrowing had been made too costly which would push up the production cost rendering exports uncompetitive on world markets.

The stock market, which is currently guarded by the price freeze, no immediate impact on the price line or the index was witnessed as mostly all the indices remained static around overnight levels.

The current increase in interest rate is said to be one of the harsh conditions, set by the IMF, which the government has to meet for securing $7.5 billion loan from the international lender. It was widely rumoured that some others conditions may be more tough that would never allow the market to play its due role in the country’s economic growth, some others said.

“How the hike in discount rate will affect the stock trading will be known after the floor is lifted,” said analyst Hasnain Asghar Ali. “But indications are that it could well prove the last straw that breaks the camel’s back”.

Added to it will be massive foreign selling at a widely rumoured discount of 15 to 20 per cent, the rate at which the current off-the-market transactions are being done, he added.

Meanwhile, the market was abuzz with rumours about the removal of the floor possibly by next Monday.

“Before that a crucial special session will be held to pave the way for lifting of the floor leading to normal resumption of trading as by that time most of outstanding settlements may be finalized,” some others said.

All the indexes including the benchmark 100-share and the KSE 30-share remained static at 9,183.14 and 10,003.99, respectively, but the all-share index eased by a fraction of 0.09 points at 6,639.23.

The trading volume rose from the all-time low of 24,500 shares to 73,500 shares as losers topped the lone gainer at four to one, with nine shares remaining unchanged at the last levels.

National Asset Leasing led the list of actives, unchanged at Rs0.40 on 23,500 shares, Tandlianwala Sugar, lower nine paisa at Rs6.43 on 15,000 shares, Nimir Resins, static at Rs5.05 on 10,000 shares, Sitara Energy, lower 24 paisa at Rs20.36 on 6,500 shares, Sally Textiles, off 80 paisa at Rs1.50 on 5,000 shares, Gharibwal Cement, easy by eight paisa at Rs17.37 on 5,000 shares, and Libaas Textiles, static at Rs1.75 on 3,000 shares.

Kot Addu Power followed them, unchanged at Rs37.80 on 1,000 shares, Fidelity Leasing, static at Rs3.30 on 1,000 shares and Tri-Star Power, also static at Rs1.64 also on 1,000 shares.

DEFAULTER COMPANIES: Hydery Constructions came in for stray support and was quoted higher by two paisa at Rs1.05 on 1,000 shares, others were held unchanged.