KARACHI, Dec 10: Stocks on Tuesday ran into a mild profit-selling at the higher levels as follow-up support turned shy in the absence of leading bulls, who signalled that the index level beyond 2,400 points is fraught with high risks. The KSE 100-share index fell by 11 points at 2,389.62.

But some others claim selling was aimed at diversifying investment portfolios in a bid to strike a judicious balance between the high risk areas and the relative safe havens in the prevailing near-boom conditions and fears of snap reaction.

After early rising to 2,415, the KSE 100-share index finally ended lower by 10.72 points at 2,389.62 as compared to 2,400.34 a day earlier as some of the leading base shares ran into profit-selling and ended lower.

Trading volume soared to 365m shares from the previous 252m shares as some of the leading bears indulged in hasty selling in pivotals such as PTCL and Hub-Power to take profits at the available margins.

The notable feature was that Hub-Power tested its recent highs at Rs30.20, while Adamjee Insurance was close to breach through its either-way circuit breaker on active alternate bouts of buying and selling ahead of its board meeting by the end of the current month amid rumours of “hostile takeover bid”.

Reports of postponement of the Saarc meeting in Islamabad triggered a lot of selling earlier in the session but as institutional investors were not inclined to entertain bearish ideas at least for the near-term pumped huge amounts in selected shares at the falling prices.

However, toward the close bears managed to manifest their presence in a bigger way and pushed the market into the minus column after having made major dents in the vulnerable levels of some of the blue chips.

Stock analysts said opinions are divided over the market’s current sustained rise to new index levels. Some say it is a trap to net in the retailers to follow them and then leave the market.

Some others claim big ones are trapped after having purchased some of the blue chips at much higher rates during the previous run-up and are now out to bail themselves out from the prevailing financial impasse.

“The major casualty again could be the small investor”, an analyst fear “the trap is there but who are wise enough may stay out at least until the perception of a political stability is achieved”.

Major gainers were led by Parke-Davis and Hilal Flour Mill, which rose by Rs34 and Rs25.25 followed by Pakistan Reinsurance Co, Wyeth Pakistan and Unilever Pakistan, up by Rs9.90 to Rs30. The sharp rise in Parke-Davis was attributed to shortage of floating stocks ahead of the dividend.

EFU Life, New Jubilee Insurance, Kohinoor Weaving, Dilon, Siemens Pakistan, Aventis Pharma and Nestle MilkPak, which rose by Rs2 to Rs5.

Prominent losers included Pakistan Refinery, Pakistan Oilfields, Millat Tractors, Treet Corporation and Grays of Cambridge, off Rs3.50 to Rs9. Adamjee Insurance, National Refinery, PSO, Bolan Casting, Packages, and Gillette Pakistan also suffered decline ranging from Rs2.40 to Rs3.30.

Trading volume was maintained on the higher side thanks to massive activities in Hub-Power and PTCL, while gainers and losers were evenly matched at 154, with 66 shares remaining unchanged from the previous levels.

Hub-Power again topped the list of most actives, unchanged at Rs29.75 on 99m shares followed by PTCL, lower 20 paisa at Rs23.85 on 66m shares, Sui Northern Gas firm by 10 paisa at Rs19.70 on 30m shares, ICI Pakistan, up by 20 paisa at Rs47.80 on 25m shares and FFC-Jordan Fertilizer, easy 10 paisa at Rs9 on 20m shares.

Other actives were led by National Bank, steady by 10 paisa on 14m shares, KESC, up by the same amount on 12m shares, PSO, off Rs3.30 on 12m shares, Nishat Mills, lower 20 paisa on 10m shares and Adamjee Insurance, off Rs2.85 also on 10m shares.

FORWARD COUNTER: PSO came in for active selling at the higher level and fell by Rs3.40 at Rs183 on 10m shares followed by Engro Chemical, easy 15 paisa at Rs75.70 on 5m shares and FFC-Jordan Fertilizer, easy 15 paisa at Rs9.05 on 4m shares.