KARACHI, Nov 29: Stocks on Thursday failed to hold on to previous gains as weakholders hastened to take profits at the available margins in the absence of strong follow-up support. The KSE 100-share index fell 1.32 per cent or 18.23 points at 1,358.16.

The reversal in part was attributed to selling in PSO, which has been in strong demand over the last couple of sessions amid reports that a leading company has offered to sell 5m shares held in its portfolio to a Dubai-based buyer.

But, as the rumour apparently failed to get through, profit-selling set in, which not only pushed PSO price sharply lower but also it took other pivotal along with it in the minus column.

The crisis created by the resignation of some highups of the Lahore Stock Exchange on Tuesday as a protest on some legal ruling on certain issues also echoed in the KSE corridors, affecting the market trend. Some of the local brokers are also members of the LSE and have a stake in any negative development.

The KSE 100-share index shed all the fractional gains, which it has recouped during the last three sessions on selling and ended off 18.23 at 1,358.16 as compared to 1,376.39 a day earlier as all the leading base shares fell in unison under the lead of PTCL and Hubco.

Weakholders, who have been holding on to their positions for the last couple of sessions to benefit from the anticipated higher badla margins, hastened the selling as the margins were not attractive enough to hold on to long positions.

But a considerable decline in the turnover figure reflects that bulk of the selling originated from the weakholders rather than the big ones who stayed away.

But stock analysts at the W.E.Financial Services believe the reaction was necessary as it could lead the market to new highs after passing through a needed technical correction.

“Essentially, each consolidation phase paves the way for the market to build-up a strong basic infrastructure to tread on more safely in the weeks to come,” they maintain.

Stock analysts at the Finex Securities are also of the opinion that a major change in the financial as well as economic fundamentals speak of the things to come and the capital market could hardly be an exception.

Price changes were, therefore, mostly fractional barring some leading shares, which received heavy battering under the lead of Bhanero Textiles, Shell Pakistan and Wyeth Lab, falling by Rs.3.75 to 14.

Other notable losers included Adamjee Insurance, EFU Life Insurance, Faisal Spinning, Al-Ghazi Tractors and Lever Brothers, which suffered fall ranging from one rupee to Rs.3.

Some of the leading shares managed to put on modest gains ranging from one rupee to 1.40 for Treet Corporation, Crescent Textiles and Javed Omer, while all others were fractional.

Turnover fell to 47m shares from the previous 71m shares as losers forced a strong lead over the gainers at 105 to 31, out of 169 actives.

PTCL came in for active selling and was quoted lower by 35 paisa at Rs.17.75 on 15m shares followed by Hub-Power, easy 40 paisa at Rs.19.50 on 14m shares, PSO, sharply lower by Rs.3.85 at Rs.98.80 on 6m shares, Engro Chemical, lower 40 paisa at Rs.55.20 on 3m shares and ICI Pakistan, off 70 paisa at Rs.44 on 2m shares.

Other actives were led by Fauji Fertilizer, off 30 paisa on 1.045m shares, Adamjee Insurance, easy 70 paisa on 0.948m shares, Sui Northern, lower 20 paisa on 0.834m shares and MCB, off 40 paisa on 0.670m shares.

FUTURE CONTRACTS: Forward shares also followed the lead of the ready counter and fell for both the November and the December settlements, leading loser among them being PSO, which fell by Rs.3.45 and 3.75 for both the settlements at Rs.99.05 and 100 respectively on 0.186 and 0.150m shares respectively.