KARACHI, Sept 16: After opening higher, stocks on Monday finished with an extended decline owing partly because of lack of strong institutional support and partly to renewed selling.

The recomposed KSE 100-share index on Monday made its debut modestly higher at 1,960.00 but failed to make further headway owing to renewed selling in leading base shares and fell to finish lower by 15.60 points at 1,939.06 as compared to its last weekend close of 1,954.66, breaching the support level of 1,940 points.

Having in its fold about 83 per cent of the total market capitalization of Rs455 billion, it danced to the tune of the massively capitalized shares on its debut but analysts said being fully representative of the broader market it will, in the coming sessions, reflect the strength of the listed companies.

“The market needs a steady inflow of liquid funds, notably from the financial institutions to sustain the index level above the 1,900 points, the threatening massive badla volume could cause further price erosions”, fears a leading stock analyst.

The trio of PTCL, Hub-Power and PSO, which holds over 50 per cent weightage in it, will set future trend in line with their performance on the trading board.

“If the trio is down it could follow-up them, if they are up it will reflect their performance”, says an analyst “the remaining 97 shares together may not be in a position to disturb the status quo for obvious reasons”.

Some claim it will bounce back after hitting the low level of 1,910, some others said the changing political scenario in the backdrop of the coming national elections may not allow the consolidation forces to full reinforce the positive side of the some basic fundamentals.

“Reports of a debt waiver of $1 billion during the president’s last week’s US visit after his meeting with president Bush and good dividend news from the leading corporate entities will not allow further price erosions”, some others said.

Another positive news was that EOBI, having an enormous funds at its disposal, in an effort to diversify its investment portfolio, intends to have a stake in the capital market should have evoked a good bit of buying in selected shares but went unnoticed, they added.

The heating up of cross-border political scene in the backdrop of elections in held Kashmir did, however, worry investors and so did heavy badla volume and its offloading in part in most of the liquid shares including PSO, PTCL, Hub-Power and some others.

However, all was not bad with the broader market as some of the blue chips managed to finish with extended gains, notable among them being Bolan Castings, Grays of Cambridge, Attock Refinery, Arif Habib Securities, and Park-Davis, which posted gains ranging from Rs2.80 to Rs16.50.

Other good gainers were led by Imrooz Modaraba, Javed Omer, Artistic Denim, National Refinery, Pakistan Refinery on higher margins, Century Papers and Pakistan Paper Products after a good dividend of 25 per cent plus bonus share in the ratio of one for each four shares held, rising by Rs1.90 to Rs2.50.

Losers were led by most of the leading MNCs including Siemens Pakistan, Shell Pakistan, and Rafhan Maize Products, off Rs3 to Rs10. PSO and Pakistan Oilfields fell by Rs4 each. Mehmood Textiles, Millat Tractors, Mari Gas, and Nestle MilkPak, lower by one rupee to Rs2.70.

Trading volume fell to 75m shares from the previous 87m shares as losers maintained a strong lead over the gainers at 158 to 93, with 57 shares holding on to the last levels.

Hub-Power was actively traded, off 25 paisa at Rs27.10 on 28m shares, PSO, sharply lower by Rs4 at Rs188 on 21m shares, PTCL, easy 15 paisa at Rs19.45 on 9m shares, National Bank, off 65 paisa at Rs22.50 on 2m shares, MCB, lower 25 paisa at Rs26.05 also on 2m shares and Engro Chemical, lower 35 paisa at Rs60.20 on 1.598m shares.

Other actives were led by Dewan Salman, lower 45 paisa on 1.465m shares, D.G.Khan Cement, easy 30 paisa on 1.291m shares, Sui Northern Gas, easy 10 paisa on 0.807m shares and ICI Pakistan, lower 10 paisa on 0.758m shares.

FORWARD COUNTER: PSO came in for renewed strong selling and fell to close lower by Rs4.10 at Rs188.30 on 8.117m shares followed by Hub-Power, easy by 20 paisa at Rs24 on 8.178m shares and PTCL, lower also by 20 paisa at Rs19.55 on 3.157m shares.