KARACHI, Sept 9: Stocks on Thursday failed to hold on to the overnight gains as investors took profits at the inflated levels awaiting some positive developments on the Capital Value Tax after the return of the prime minister from Saudi Arabia.

Bulk of selling originated from the financial institutions, notably Faysal Bank and PICIC followed by some others but there was no matching buying offers from any quarter even at the falling prices, analysts said.

But the immediate worry of investors appears to be the introduction of margin financing in phases, replacing decade-old badla system and it will take quite some time before investors notably the small savers and short-term dealers could fathom the merits and demerits of the system.

The KSE 100-share index shed in part the overnight gain, off 15.27 points at 5,184.12 as compared to 5,199.39 a day earlier, reflecting the weakness of the leading base shares.

It touched the day's high level at 5,208 early on reports of bonus shares along with the final dividend by Pakistan Oilfields, whose board meets on Sept 11. "The market appears to be in a terrible mess" says a leading stock analyst "punters enter the market early in the session and leave toward the close without having a look at their day's tally of loss and gain".

Both the imposition of Capital Value Tax (CVT) and phasing out of badla system have taken steam out of the market for the last about three months allowing outflow of money from the capital market to other gainful investment avenues, he adds.

"A robust share market seeking the index level of 6,000 points during the post-budget months was pushed in the reverse gear just with two negative financial steps for a few billion of rupees", brokers complain.

"We still hope there must be some official rethinking on both the issues if the market is sought to put back on the rails, emitting bullish sparks as it did after resuming its strong upward drive from 3,000 index level to 5,620.00 before national budget in June."

Colgate Pakistan again came in for active support aided by higher dividend and finished with an extended gain of Rs15.75 followed by Millat Tractors, up by Rs14.55. Other good gainers included Arif Habib Securities, Gatron, Shell Pakistan, Berger Paints, Cherat Papers, and Security Papers, up by Rs4 to Rs9.60.

Losers were led by Wyeth Pakistan, off Rs61 followed by Javed Omer, which fell by Rs14 followed by Attock Refinery, BOC Pakistan, Pak Elektron, Atlas Battery, Pak-Suzuki Motors, HinoPak, and EFU Insurance, off Rs3 to Rs7.

Trading volume fell to 141m shares from the previous 200m shares as losers forced a strong lead over the gainers at 201 to 105, with 47 shares holding on to the last levels.

D.G.Khan Cement topped the list of actives, easy five paisa at Rs56.90 on 20m shares followed by PTCL, which came in for renewed selling on reports that its management would further reduce tariff on local calls and consequent fears of fall in its profits, off 40 paisa at Rs39.95 on 15m shares, OGDC, lower 10 paisa at Rs63.50 on 13m shares, Bank of Punjab, off 75 paisa at Rs64.05 on 11m shares, Pak PTA, up by 25 paisa at Rs14 on 9m shares National Bank, lower 50 paisa at Rs69.50 on 7m shares and Pakistan Oilfields, higher by Rs1.55 at Rs205.25 on 6m shares.

Other actives were led by Maple Leaf Cement, steady by five paisa on 5m shares, Hub-Power, lower 15 paisa also on 5m shares and F.F. Bin Qasim, easy 10 paisa on 5m shares.

FORWARD COUNTER: Pakistan Petroleum came in for active support and rose by another 10 paisa at Rs109.45 on 28m shares, followed by PTCL, easy 35 paisa at Rs39.95 on 7m shares, D.G.Khan Cement, down 10 paisa at Rs56.95 on 4m shares, OGDC, lower 20 paisa at Rs63.55 also on 4m shares, National Bank, easy 55 paisa at Rs69.70 on 2m shares. Others also showed fractional either-way changes.