KARACHI, July 16: Stocks on Friday finished further lower as leading investors were not inclined to take fresh positions amid fears of badla-related offloading and predictions of further erosion in equity values.

Sharp increase in the badla volume at 28m shares signalled that the market is ripe for a big sell-off at any time during the next week and some of the investors adjusted their positions accordingly.

The KSE 100-share index breached through the barrier of 5,400 and was last quoted at 5,387.84 as compared to previous 5,438.94, off 51.10 points, being the week's biggest fall, reflecting the weakness of major base shares. The total market capital was also marked down by Rs14bn at Rs1,454bn.

The volume figure on the carryover market (badla) soared to a record level of 28m shares from the previous couple of weeks average of 22m shares, which could well mean heavy unloading any time, notably from the sundry speculators.

Pakistan Petroleum IPO-related selling by a section of investors to apply for its shares to the maximum of their financial limits was another destabilising factor. No one among the moneyed people is inclined to miss it owing to its higher yield of over 8pc, brokers said.

Already, Privatization Commission has held road shows in the major cities in an apparent bid to attract as many investors as it could to its IPO, they said. In market parlance, higher badla turnover always cause major dents in the ruling price structure owing to hasty selling, bulk of which fails to find ready buyers.

Together with the central bank's measures to limit banks investment in the bond market where the yield on investment is claimed to be higher by over two per cent at 8pc from the previous 6.35pc, the increase in carryover volume worried investors.

"The possibility of any imminent big shakeout appears to be remote as most of the fundamentals are positive but combined badla-related and bank selling could chip another 50 points or so from the index", some analysts predict.

The market could pass through another two lean sessions as investors are lining up funds to massively invest in the IPO of Pakistan Petroleum, which will open for public subscription from July 19-22.

Energy shares led the market decline as widely speculated upward revision in selling prices was not there. Shell Pakistan fell by Rs8 and so did some others including Mari Gas, off Rs3.

Other prominent losers included Javed Omer, EFU Life, Noon Sugar, Pakistan Cables, Siemens Pakistan and Arif Habib Securities, which suffered fall ranging from Rs4 to Rs8.

Some of the leading shares managed to finish further higher on active support, major gainers among them being Ferozsons Lab, Pakistan Services and Lakson Tobacco, which posted gains ranging from Rs7 to Rs13.

They were followed by Pakistan Refinery, New Jubilee Insurance, Pakistan Cables and AKD Securities, up by Rs2.10 to Rs5. Trading volume showed a modest fall at 230m shares as compared to 233m shares a day earlier as leading investors kept to the sidelines and did not make fresh commitments even at the falling prices.

Losers held a strong lead over the gainers at 206 to 66, with 46 shares holding on to the last levels, out of 318 actives. The most active list was topped by D.G.Khan Cement, off Rs2.25 at Rs57.30 on 24m shares, followed by Nishat Mills, firm by 30 paisa at Rs55 on 23m shares, National Bank, up by 50 paisa at Rs71.80 on 22m shares, Bank of Punjab, lower 60 paisa at Rs66 on 19m shares and OGDC, easy by 80 paisa at Rs66.05 on 14m shares.

Other actives were led by PSO, up by Rs1.10 on 13m shares, PTCL, lower 50 paisa on 11m shares, Sui Northern Gas, up by 60 paisa on 10m shares, Lucky Cement, easy Rs1.35 on 9m shares and TRG Pakistan (r), off 85 paisa also on 9m shares.

FORWARD COUNTER: Pakistan Petroleum came in for stray weekend selling and was marked down by 55 paisa at Rs113.40 on 13m shares followed by D.G.Khan Cement sharply lower by Rs2.25 at Rs57.35 on 5m shares, PSO, up by 85 paisa at Rs271.50 on 4m shares, OGDC,lower 55 paisa also on 4m shares and PTCL, easy 25 paisa at Rs43.40 on 3m shares.