KARACHI, March 24: Stocks on Monday turned mixed as leading shares came in for active profit-selling at higher levels as the assumptions of a quick end of Iraq war seem to be fading into the phenomenon of negative ground realities. The KSE 100-share index fell by 17.45 points at 2,634.26.

Leading financial investors hastened to take profits at the inflated levels, while others held the fort apparently leading the market to an orderly decline rather than panic reversal.

“The long war in Iraq may not be in the interest of bulls as they have entered the market on the perception of quick US victories and swift run on Baghdad,” analysts said. “They may not take a risk if the course of war changes and leaves the market as they did enter.”

The investors’ nervous mood is also well-reflected in the highly volatile and erratic movements of the KSE 100-share index over the day. After opening four points lower, it steadily advanced to hit the peak of the day, up about 36 points over the weekend close at 2,686.

But as the reports of stiff resistance to the coalition advancing forces by the Iraq armies came in bargain-hunters and speculative traders hastened to get out of the market. The index reacted to close 17.45 points off at 2,634.26 as compared to 2,651.71 at the last weekend.

“Essentially, the market is expected to follow the course of events in Iraq as the perception of a quick war may now have no relevance to the changing scenario on the war theatre,” analysts said, adding “those who have initiated the buying euphoria after the US attack on Iraq may now be thinking to follow the exit routes.”

During the two sessions, which followed the US air attacks on Iraq, financial institutions have injected massive funds in the energy and some yielding stocks amid predictions that the war may end within a couple of days.

“The index had gained about six per cent during the last two sessions of the previous weeks and how it follows the course of war events will largely depend on the holding capacity of the cash heavy financial institutions,” brokers said.

They predicted the current tempo of rising prices may slow down, but ruled out the possibility of any major shakeout at this initial stage of war as it is pretty difficult to say something about its outcome.

“There is, however, long whispering in the KSE corridors that it could turn into world oil war as other big powers may not like to be at the receiving end if the US occupies Iraq’s massive black gold wealth, they said.

However, despite general trend being on the lower side, some of the leading shares managed to put on fresh good gains under the lead of IGI Insurance, Bhanero Textiles, Nestle MilkPak, Siemens Pakistan and Unilever Pakistan, up Rs6 to Rs21.

Other good gainers were led by some of the insurance and textile shares, major gainers among them being EFU General and Life, Faisal Spinning, Sana Industries, Sapphire Textiles and Sapphire Fibre, Crescent Steel, Century Papers and some others, up by Rs2 to Rs3.

Losers were led by Mitchell’s Fruits, Pakistan Oilfields, PSO, Shell Pakistan and Shell Gas, off Rs2.83 to Rs5, followed by Attock Refinery, Glaxo-Wellcome, Ghani Glass, BOC Pakistan, Parke-Davis and Saudi Pak Bank, off one rupee to Rs1.90.

Trading volume fell to 185m shares from the previous 286m shares as gainers maintained a fair lead over the losers at 142 to 115, with 41 shares holding on to the last levels.

PTCL topped the list of most actives, off 55 paisa at Rs23.60 on 67m shares followed by Sui Northern, easy 45 paisa at Rs24.20 on 22m shares, PSO, off Rs4.75 at Rs203 on 18m shares, FFC-Jordan Fertiliser, lower five paisa at Rs11.10 on 12m shares, Hub-Power, easy 25 paisa at Rs36.75 on 6m shares, National Bank, lower 15 paisa at Rs26.15 also on 6m shares and MCB, up 30 paisa at Rs32.05 on 5m shares.

Other actives were led by Dewan Salman, unchanged on 6m shares, ICI Pakistan lower 40 paisa on 5m shares and Pakistan PTA, easy 10 paisa on 4m shares.

FORWARD COUNTER: Speculative issues on the cleared list also followed the lead of their counterparts in the ready section and finished mixed barring PSO, which received massive battering in both the settlements, notably the newcomer April contract, off Rs8.50 at Rs199.50.