KARACHI, Sept 2: The current sustained run-up on the stock market was halted on Monday as investors took profits at the higher levels but analysts predict that the dividend-led rally is not overdone. The KSE 100-share index reacted to close lower 22.01 points at 1,952.58 amid reduced activity.

It appears to be pre-Hub-Power board meeting tactical sell-off in an overbought market as some big players tried to reverse the trend apparently in a bid to lift the floating stocks at the dips in most of the pivotals.

Oil selling giants showed an erratic reaction to the deregulation of diesel prices as a section of investors sold in a haste fearing decline price war among them. While Shell Pakistan rose by Rs5.30, PSO fell by Rs5.45 from its recent peak level of above Rs200.

After rising by 15 points, the KSE 100-share index finally finished with a fall of 22.01 points owing to heavy selling in the leading base shares including Hub-Power, PTCL and PSO. It finally ended around 1,952.58 points.

The opening was, however, on a higher note, what the dealers called, the extension of the weekend run-up but the mid-session saw a good bit of profit-selling in the high profile issues, allowing the market to meet its technical demands.

“I don’t think the market’s upward journey is halted”, Raheel Moosani a leading stock analyst at the Moosani Securities predicts “it is a judicious combination of both the technical correction and pre-Hub-Power dividend announcement”.

Some of the leading brokers and institutional traders indulged in profit-selling in Hub-Power to push its price lower ahead of its board meeting on Sept 4, and to cover positions at the dips for capital appreciation.

Most analysts believe the KSE 100-share index is expected to maintain its current run-up until the final dividend announcement by the Hub-Power management in its London board meeting. And if the payout at 50 per cent is in line with the market perception, it could push the index to the coveted level of 2,000 points and if it is 30 to 35 per cent there may be a lot of selling.

“But the market has other positive factors in its kitty to sustain the current run-up”, predicts a leading broker adding “the future trend will largely be dependent on the rate of dividend of Hub-Power”.

Although losers held a modest lead over the gainers, leading shares maintained their upward drive under the lead of Lakson Tobacco, IGI Insurance, Parke Davis, Dawood Hercules and Pakistan Oilfields, up by Rs2.45 to Rs7.50. But the largest gain of Rs12.75 and Rs14.05 were noted in Nestle MilkPak, and Siemens Pakistan, which have been under pressure for the last couple of days on selling.

Losers were led by Adamjee Insurance, Pak Reinsurance Company, Attock Refinery, Engro Chemical and Wyeth Pakistan, off Rs2 to Rs30. Others mostly fell fractionally.

Trading volume fell to 187m shares from the previous 234m shares as losers forced a comfortable lead over the gainers at 124 to 97, with 54 shares holding on to the last levels.

Hub-Power came in for heavy selling at the inflated level and topped the list of most actives, off 75 paisa at Rs28 on 88m shares followed by PTCL, lower 60 paisa at Rs19.55 on 31m shares, PSO, sharply down by Rs5.45 at Rs197.20 on 20m shares, D.G. Khan Cement, lower 30 paisa at Rs11.35 on 6m shares and Sui Northern Gas, easy 70 paisa at Rs14.95 on 5m shares.

Other actives were led by Pak PTA, up 35 paisa on 4m shares, Engro Chemical, off Rs2 on 3.355m shares, Dewan Salman, lower 40 paisa on 2.883m shares, ICI SEMF, off 70 paisa on 2.524m shares and National Bank, easy 35 paisa on 2.390m shares.

CLEARED LIST: The notable feature was that the matured August settlements were run off the board and the September contracts assumed the role of ruling deliveries.