KARACHI, July 23: Stocks on Tuesday finished further shaded in line with global markets but larger decline was resisted thanks to active support at the lower levels. The on-balance trend remained on the downside amid low volume.

Price changes on all the counters were mostly fractional and reflected lack of support rather than large selling from any quarter as most of the investors are maintaining a status quo until the market follows a definite trend.

Trading resumed on an easy note in the backdrop of reports of bankruptcy of some leading MNCs including WorldCall but active short-covering at the dips allowed the market to finish with clipped losses.

The liberal trade policy envisaging an export target of $10.35bn or two-way foreign trade of $22bn for the current fiscal year with allied incentives for the exporters to achieve this figure did not immediately influence the market sentiment as analysts were still in the process of assessing its long-term impact on stock trading.

Some claimed it will give the needed push to the industrial sector notably the cotton-based one provided an assumption of another bumper crop proves correct.

There was a scare in the market earlier in the session after the reports of a big fall of 235 points in Dow Jones was flashed on the TV and the market witnessed stray panic selling on some of the MNCs.

“But timely selective support from the institutional traders saved the situation as the KSE 100-share index ended with a modest decline of 7.03 points at 1,794.87 points as compared to 1,801.90 a day earlier”, stock analysts said.

The general thinking was that the index could fall further as the turmoil on the US financial markets created panic among the local investors most of whom preferred to keep to the sidelines rather making fresh commitments.

Others claim the local market could fall in line with the world bourses temporarily, mauled by psychological factors, but its link with them is too weak to cause a major setback.

A considerable fall in the volume figure reflects that investors withdrew to the sidelines rather than indulging in panic selling on any of the counters.

Floor brokers said the strength of Hub-Power and some other blue chips did not allow bears to pull the market down below its technically sustainable level.

Advancing shares were led by First ICP Mutual Fund, General Tyre, PICIC Commercial Bank (RAL), Dawood Hercules, BOC Pakistan and Island Textiles, up one rupee to Rs4.

Losers were led by Crescent Textiles, Shell Gas, Glaxo-Wellcome, Shell Pakistan and Fazal Textiles, which suffered fall ranging from one to Rs3.35.

Trading volume shrank to 61.11m shares from the previous 95 shares as losers held a modest lead over the gainers at 129 to 102, with 69 shares holding on to the last levels.

Hub-Power again led the list of actives, unchanged at Rs24.40 on 21m shares followed by PTCL, easy five paisa at Rs17.85 on 13m shares, PSO, lower 95 paisa at Rs141.15 on 7m shares, KESC, off 30 paisa at Rs4.95 on 4m shares and National Bank, up 10 paisa at Rs21.30 on 2m shares.

Other actives included Engro Chemical, firm by five paisa on 1.784m shares, Southern Electric, steady by 15 paisa on 1.311m shares, Sui Northern, lower 15 paisa on 1.187m shares, D.G.Khan Cement, steady five paisa on 1.083m shares and MCB, easy 40 paisa on 1.067m shares.

FUTURE CONTRACTS: PSO led the decline on forward counter followed by active selling and ended off Rs1.05 at 141.20 on about 2m shares. Its August settlement also followed the ruling July delivery.