KARACHI, Oct 23: Stocks on Thursday fell further on a wide front as investors were not inclined to make fresh commitments even at the falling prices apparently awaiting the revival of institutional demand in the backdrop of fresh Indian peace overture. The KSE index declined by 76.59 points or two per cent at 3,850.12 points.

The market decline was led by the energy and auto sectors followed by overvalued shares on the other counters, which fell sharply lower in unison on renewed profit-taking but elsewhere the fall was fractional.

The second interim dividend of 40 per cent by Nestle MilkPak (60 per cent first interim already paid) was well-received in the market as was reflected by a fresh rise of Rs6 in its share value at Rs290 against its face of Rs10.

The total market capital also followed the lead of the base index shares and suffered a fresh fall of Rs16.628bn at Rs819.975bn as compared to overnight’s Rs836.603bn.

The KSE 100-share index shed another 76.59 points or two per cent at 3,850.12 as compared to 3,926.71 a day earlier, signalling that it is trying to find its viable level backed by the objective corporate and economic conditions.

“I don’t say its meteoric rise to an all-time high of 4,604 points early last month was speculative, it was certainly not backed by the economic data,” says a member of the KSE. “It could fall to 3,000-point level if the financial institutions do not come to its rescue from the strong hold of bears.”

India’s 12-point peace move to normalize relations between the two close neighbours should have triggered a lot of covering purchases by the “shorts” but technical factors weighed against the underlying sentiment.

The Indian peace overture has been welcomed by the market beyond analysts perceptions but the current confidence-building steps failed to produce the desired impact on the market.

“There is scare in the market as everyone is trying to get out of it at the current levels but there is no matching buying support from any of the quarters at the falling prices,” analysts said.

They said lower quarterly profits of some of the leading companies including Shell Pakistan, ICI Pakistan, Engro Chemical and some others announced on Wednesday also have a share in the market’s steep decline.

The falling volumes reflect that the market is the victim of slack demand rather than large selling from any quarter. Everyone is awaiting the revival of demand from the institutional traders.

Minus signs again dominated the list, major losers being Javed Omer, IGI Insurance, National Refinery, PSO, Pakistan Oilfields, Shell Pakistan, Pak-Suzuki Motors, BOC Pakistan, Pakistan Services, Dawood Hercules and Bhanero Textiles, off Rs4.80 to Rs9.35.

All was, however, not bad with the broader market as good number of pivotals managed to finish further higher under the lead of Dawood Cotton, Al-Ghazi Tractors, Frontier Ceramics, Berger Paints, Ghani Glass, Lakson Tobacco and Shell Gas, which posted gains ranging from Re1 to Rs10.50.

Trading volume showed a modest increase to 183m shares from the previous 139m shares but losers maintained a strong lead over the gainers at 244 to 42, with 30 shares holding on to the last levels.

Hub-Power topped the list of most actives, lower 30 paisa at Rs34.70 on 27m shares, PSO, off Rs4.90 at Rs247.10 on 27m shares, PTCL, easy 25 paisa at Rs32.65 on 21m shares, D.G.Khan Cement, off 95 paisa at Rs36.15 on 13m shares and National Bank, lower Rs1.40 at Rs44.85 on 13m shares.

Other actives were led by FFC-Jordan Fertilizer, lower 65 paisa on 10m shares, Fauji Cement, off 75 paisa on 9m shares, Pakistan Oilfields, off Rs5.30 on 8m shares, Dewan Salman, easy 70 paisa on 5m shares and MCB, lower Rs2 on 4m shares.

FORWARD COUNTER: PSO came in for renewed selling owing to confusion about the final bidding date and fell further by Rs4.40 at Rs247.60 on 20m shares, followed by PTCL, easy 20 paisa at Rs32.65 on 8m shares, Hub-Power, lower 25 paisa at Rs34.55 on 7m shares, FFC-Jordan Fertilizer, easy 40 paisa at Rs16.05 on 4m shares and ICI Pakistan, off Rs1.10 at Rs72.90 on 2m shares.