KARACHI, Feb 26: After opening higher, stocks on Tuesday came in for active profit-selling at the inflated levels but the strength of PTCL and PSO limited the decline owing to strong support at the dips. The KSE 100-share index fell by 5.30 points at 1,718.34.

There was no specific negative news to which the reversal could be attributed, although some brokers feel some rethinking on Indian president’s threat not to deescalate border situation and the killing of the US journalist Daniel Pearl may have triggered late selling.

Price changes either-way were mostly fractional and reflected that investors were not inclined to part with their holding on the perception that the snap reaction may not be extended owing to bullish fundamentals.

But there was no dearth of buyers at the falling prices, mostly on the blue chip counters as the general perception about the future outlook is more than bullish.

The KSE 100-share index early was up by about 18 points, what the dealers called, the extension of the pre-Eid holiday run-up but negative comments on Pakistan talk offers from across the border and murder of the US journalist Daniel Pearl triggered selling toward the close of the session.

It ended off 5.30 points at 1,718.34 as compared to 1,723.64 at the last weekend, reflecting the weakness of the Hub Power, which came in for active profit-selling.

The index early endeavoured to hit its next chart point of 1,750 but failed to find the required support as a section of investors tried to cash in on the available margins rather than making fresh commitments even on the blue chip counters.

Although the performance of the market remained relatively sluggish as many leading operators were still in post-holiday mood and spent most of their time in exchanging eid greeting rather than going for a big kill on selected counters.

“Technical corrections here and there notwithstanding, there is nothing to suggest that the current run-up is overdone,” stock analysts at the W.E.Financials predict adding “the fact that the government wants to complete its entire privatization programme during this fiscal could generate a lot of activity in the coming weeks.”

The prevailing speculative run on PSO owes its strength to this perception that its sell-off gives the needed depth to stock trading as it is capable of taking the entire market along with it ably assisted by the PTCL and Hub Power, stock analysts at the AHRL say.

PSO finished with an extended smart gain as “interested quarters who are inclined to bid for it are cornering its floating stock irrespective of the price increase.”

Prominent gainers were led by Adamjee Insurance, General Tyre, Sindh Alkalis, Ferozsons Lab, Reckitt and Benckiser, Engro Chemical, Al-Ghazi Tractors, ICI Pakistan and PSO, which posted gains ranging from Rs.1.05 to 2.25.

Losers were led by Sapphire Textiles, Sapphire Fibre, Shell Pakistan and Lever Brothers, which suffered fall ranging from Rs.2.45 to 17.90. Others to follow them were Umer Fabrics, Fateh Industries, Millat Tractors, Pakistan Oilfields and BOC Pakistan, off one rupee to Rs.1.45.

Trading volume was maintained on the higher side at 170m shares thanks to two-way activity in Hub Power, although losers managed to force a fair lead over the gainers at 101 to 81, out of 221 actives.

Hub Power led the list of actives, off 15 paisa at Rs.28.60 on 77m shares followed by PTCL, unchanged at Rs.18.15 on 26m shares, PSO, sharply higher by Rs.2.25 at Rs.133.75 on 13m shares, Fauji Fertilizer, off Rs.1.10 at Rs.49.90 also on 13m shares and ICI Pakistan, higher by Rs.1.15 at Rs.48.50 on 12m shares.

Other actives were led by Engro Chemical, up Rs.2.05 on 8.916m shares, Sui Northern, lower 30 paisa on 4.086m shares, National Bank, easy 10 paisa on 3.653m shares, Adamjee Insurance, up Rs.1.05 on 2.885m shares and KESC, off 30 paisa on 1.504m shares.

FUTURE CONTRACTS: Mixed trend was seen on this counter where Engro Chemical and PSO rose by one rupee to Rs.2.90 at Rs.74.10 and 132.40, Ibrahim Fibre and Fauji Fertilizer fell by Rs.1.50 and 1.80 at Rs.12.50 and 49.70 on selling.