KARACHI, July 22: Stocks on Thursday failed to extend the overnight run-up as weakholders and jobbers liquidated long positions on selected counters at the available margins fearing a badla-related sell-off but there were buyers at the dips.

The KSE 100-share index shed 14.38 points at 5,426.11. The opening being higher was, what the dealers called, the spill-over of overnight demand but reports of increase in carryover rates and volume and fears of fresh heavy unloadings at the weekend session triggered late selling in most of the leading base shares.

There was, however, no immediate negative impact on the share market of the impending increase of half a per cent in the interest rates during the first half of the current fiscal under the central bank's new monetary policy announced on Wednesday, brokers said.

Analysts said panic gripped the weakholders who sold in a haste to square positions fearing that higher carryover rate at about 13 per cent could trigger hasty liquidation from others also.

As there was no liquidity problem and all the sale offers were readily absorbed by the financial institutions and some leading investors at the dips.

The interest rates have already been raised to 3.5 per cent and the proposed increase will push them to 4 per cent possibly by early December.

The KSE 100-share index earlier rose by 32 points, what the dealers called, the outcome of spill-over demand from the previous session and at one stage it surged to 5,472.57. But later selling in the pivotals pushed it down to finish with a modest decline of 14.38 points at 5,426.11 points, which was also the day's lowest level.

The market could fall by another 15 to 20 points at the weekend session but from next Monday onward the market will witness a buying euphoria aided by perceptions of higher interim dividend by some of the leading companies whose board meetings are due before July 30.

Already, rumours of 20 to 25 per cent bonus shares by the management of Fauji Fertilizer, which meets on July 28, are keeping its share in a good shape.

Energy, banking and telecom shares also performed well and so did blue chips on other counters amid modest two-way activity.

Meanwhile, it was the last day for the IPO of Pakistan Petroleum but long queues of prospective investors were seen in the banks who did not want to miss the opportunity.

Although minus signs dominated the list some of the leading shares managed to finish on the higher side under the lead of auto sector, notably Al-Ghazi Tractors, Millat Tractors and Atlas Honda, which posted gains ranging from Rs4 to Rs14.20.

Other good gainers were led by International Industries, up Rs13 followed by Bank Alfalah, Glaxo-SKF, Crescent Steel, PICIC, DM Textiles, Dawood Hercules, up by Rs2.25 to Rs4.50.

Losers were led by ICI Pakistan, Gatron Industries, Colgate Pakistan, Attock and National Refinery and Lakson Tobacco, off Rs4.05 to Rs7 but the largest decline of Rs15 was recorded in Nestle MilkPak.

Trading volume fell to 220m shares from the previous 266m shares as losers forced a modest edge over the gainers at 154 to 110, with 42 shares holding on to the last levels.

OGDC led the list of actives, easy five paisa at Rs66.85 on 39m shares followed by National Bank, lower 65 paisa at Rs71.90 on 21m shares, PTCL, easy 25 paisa at Rs44.30 also on 21m shares, Bank of Punjab, off Rs1.80 at Rs66.95 on 17m shares and Fauji Fertilizer Bin Qasim, higher 25 paisa at Rs19 on 14m shares.

Other actives were led by Lucky Cement, easy 15 paisa on 10m shares, Hub-Power, up 30 paisa on 9m shares, DG Khan Cement, lower five paisa on 8m shares, Chakwal Cement, up 10 paisa on 7m shares and Bank Alfalah, higher Rs2.25 also on 7m shares.

FORWARD COUNTER: Pakistan Petroleum came in for active selling and fell by Rs1.70 at Rs112.60 on 11m shares, followed by OGDC, firm by 10 paisa at Rs66.90 on 5m shares, PTCL, lower 25 paisa at Rs44.25 on 3m shares, Hub-Power, up 20 paisa at Rs31.95 also on 3m shares and National Bank, off 70 paisa at Rs72 on 2m shares.