KARACHI, Feb 11: Stocks on Monday ran into profit-selling as investors took profits at the inflated levels but the selling was well-absorbed at the dips on the blue chip counters.

The KSE computer system broke down owing to technical fault and for most part of the session, the index level remained out of the screen and only updated after the closure.

The KSE 100-index finished lower by 9.62 points at 1,775.38 as compared to 1,785 at the last weekend as leading base shares including PTCL and Hub-Power ended lower on active selling.

“High badla rates, which are claimed to have touched the peak level of over 24 per cent was said to be the chief villain of the game, triggering sellstops from the weakholders”, analysts said “but there were buyers at dips on the strength of strong basic fundamentals”.

No one could dispute the fact that the market is in a highly overbought position as the KSE index has, during the last about eight weeks, risen about 600 points or about 35 per cent and needs correction alone on technical grounds.

The technical correction is overdue but positive news in quick succession did not allow investors to leave the arena and they continued to built-up long positions beyond the technical mandate and that could snap sharp reversal if speculative forces choose so.

“The market may not fall from the current highs until the outcome of the president’s US visit is known”, stock analysts at the W.E.Financial predict “the index could decline to 1,750 point level in a consolidation process only to bounce back”.

For the first time during the current run-up, speculative forces dominated the trading and set the market trend as they like. Engro Chemical, for instance, remained in the tight grip of speculators and finished at the day’s peak level of Rs76.90.

All the leading shares were down under the lead of PTCL, Hub-Power and Fauji Fertiliser on profit-taking at the highly inflated levels.

After last week’s persistent run-up, minus signs managed to have a comfortable lead over the plus ones, major losers being Shell Pakistan, Grays of Cambridge and Lever Brothers, which suffered fall ranging from Rs10 to Rs14.50.

Other leading shares to follow them were Burewala Textiles, ICI Pakistan, PSO, Sapphire Textiles, Fauji Fertiliser, Sitara Chemical and IGI Insurance, falling by Rs1.50 to Rs4.40.

Gillette Pakistan, Pakistan Services, Engro Chemical and Nestle MilkPak were leading among the gainers, up by Rs2 to Rs10 followed by 6th ICP, PICIC, Sunrays Cotton, Pakistan Oilfields, and several others, rising by Rs1.40 to Rs1.50.

Trading volume fell to 286m shares from the previous 420m shares as losers forced a strong lead over the gainers at 128 to 74, with 64 shares holding on to the last levels.

The most active list was topped by PTCL, lower five paisa at Rs19.65 on 87m shares followed by Hub-Power, off 65 paisa at Rs26.65 on 80m shares, Engro Chemical, sharply higher by Rs5.90 at Rs76.90 on 23m shares, Sui Northern, lower 40 paisa at Rs14.50 on 17m shares and Fauji Fertiliser, off Rs1.55 at Rs52.75 on 14m shares.

Other actives were led by PSO, off Rs1.55 on 13.307m shares, D.G.Khan Cement, up 30 paisa on 6.801m shares, KESC, higher 25 paisa on 5.810m shares, Lucky Cement, firm by 30 paisa on 4.739m shares and FFC-Jordan Fertiliser, easy 10 paisa on 3.436m shares.

FUTURE CONTRACTS: Forward counter also followed the lead of the ready counter where all the shares fell by Rs1.35, Rs1.71, and Rs2.90 at Rs53.40, Rs137.50 and Rs48.60 respectively on 0.273m, 0.818m and 90,000 shares.