KARACHI, Jan 14: Stocks on Tuesday extended the overnight reaction on renewed selling in most of the pivotals but active short-covering toward the fag-end of the session at the lower levels allowed them to finish partially recovered.

Heavy selling in Hub-Power and PTCL for the second session in a row again dominated the trading but analysts appear to be in no mood to think of a big shakeout at least for the near-term despite market’s being in overbought position.

The KSE 100-share index gave another highly erratic performance, reflecting the investor mood over the on-going tussle between the bears and the bulls and ended with a fresh fractional decline of 3.63 points at 2,850.07 after hitting the day’s lowest and the highest at 2,835 and 2,870 respectively.

The renewed selling in Hub-Power was triggered by press reports that the government has decided to demand from it to pay Rs.802m for its first fill of 0.128m tons of furnace oil supplied by the PSO.

The reaction was psychological rather than a real one and provides an opportunity to bears to strike back after covering positions at the dips to realise handsome capital gains.

At one stage, its share value fell to day’s low of Rs.40.40 before recovering to finish slightly better at Rs.40.60.

Under the initial agreement signed over a decade back, Wapda not the Hub-Power is claimed to pay for the first fill as it has engaged the PSO for it, analysts said.

It is interesting to note that report about the first fill came at a time when bulls were in a mood to go for “another big kill” at the current levels.

However, the best is still to come as the cash heavy financial institutions are eyeing the index level of 3,000 before having some rethinking on the current run-up.

“The heavy amounts being enchased from the dollar accounts are finding their way into the share business,” one broker said adding “an avalanche of big money is still around and only fools could think of a bear market at this stage.”

But the technical correction was overdue on some other counts also including higher badla business, portfolio adjustments and the market’s highly overbought position owing to sustained run-up of about a month.

Minus signs dominated the list, major losers being International Industries, Engro Chemical, Dilon Industries, IGI Insurance and Siemens Pakistan, off Rs.2.25 to 14.45, the largest being in Siemens Pakistan followed by Fauji Fertilizer, Dilon, Gatron Industries, Shahtaj Sugar and Glaxo-Wellcome.

Some of the leading shares on the other hand came in for renewed support and rose by Rs.5 to 20 for Javed Omer, Pakistan Refinery, Universal Leather and Attock Refinery, big gain of Rs.25 being in Parke-Davis.

Other good gainers were led by ICP, SEMF, EFU Life, Dawood Cotton, PSO, Shell Pakistan, National Refinery, Atlas Battery, Nestle MilkPak and General Tyre, up Rs.2.10 to 4.45.

Turnover figure showed a modest rise at 389m shares from the previous 338m shares but losers forced a strong lead over the gainers at 173 to 138, with 54 shares holding on to the last levels.

Hub-Power led the list of actives, off 75 paisa at Rs.40.60 on 94m shares, Sui Northern Gas, higher by 60 paisa at Rs.24.80 on 84m shares, PTCL, lower 35 paisa at Rs.25.25 on 33m shares, PSO, up Rs.2.30 at Rs.235 on 29m shares and National Bank, higher 20 paisa at Rs.29.20 on 25m shares.

Other actives were led by Pakistan Oilfields, sharply higher by Rs.10 at Rs.209.95 on 22m shares, MCB, up Rs.1.50 on 17m shares, Engro Chemical, off Rs.2.80 on 13m shares, Fauji Fertilizer, lower Rs.1.50 on 10m shares and ICI Pakistan, firm by 10 paisa on 8m shares.

FORWARD COUNTER: Speculative issues on the forward counter also came in for active selling under the lead of Hub-Power and PTCL, off 65 and 40 paisa at Rs.41.15 and 25.50 respectively on 22m and 6m shares. Engro Chemical followed them, off Rs.1.40 at Rs.101.35 on 4m shares.