The Karachi stocks passed through a consolidation phase last week as investors and institutional traders remained busy with their portfolio adjustments and mostly played on both sides of the fence in an apparent bid to keep the wheels moving.

The next week could be crucial for future direction of the market as financial institutions may take fresh positions on selected counters in the light of their quarterly working results and payouts, if any.

The board meetings of over four dozen companies, including big ones are due next week and there could be pleasant surprises for analysts and brokerage houses, which in turn will have positive impact on the stock trading.

The stocks, therefore, turned in a highly volatile performance as the institutional traders played on both sides of the fence, seldom allowing punters and general investors to take long positions on any counter. There, however, was no dearth of buyers, notably at the dips.

The KSE 100-share index finished at 5,458.32, up 24.84 points over previous week's close but the market capital fell by Rs25 billion to Rs1,517.151 billion as compared to Rs1542.134 billion, a week back. Its mid-week rise to Rs1,541.511 billion could not be sustained owing to the weakness of the PTCL, the OGDC, and the Hub-Power.

The quarterly earning announcements by over three dozen companies, including the Hub-Power and some other mega issues were on the higher side of the analysts' predictions. But the absence of lead from the big ones including the financial institutions did not allow basic positive fundamentals to play their due role.

Both, the KSE 100-share index and the market capital faltered half way after setting new career highs in the absence of immediate aiding factors and an unfathomable behaviour of the market trendsetters. They touched the highest of the week at 5,467.06 points and Rs1,542.00 billion, respectively.

Over the week, the KSE 100-share index breached through the crucial barrier of 5,500 points but failed to sustain it as the institutional players moved in at each rise and indulged in heavy selling in the leading base shares, notably the OGDC, the PPL, the Hub-Power and the PTCL.

After having fallen by about 500 points below the barrier of 5,000 during the last three months, the KSE 100-share index recovered the same amount, rising by over 23 per cent during the last couple of weeks. The sharp rebound demonstrates its inherent strength and capacity to absorb the shocks of negative political fallouts.

The market talk of index level of 6,000 points was there but the leading analysts predicted that it will largely depend on post-Eid holidays' political scene as contenders of power have taken rigid positions on President's uniform issue and on the 17th Constitutional Amendment.

There, however, was nothing inherently wrong with the broader market as it finished higher for the 5th week in a row on the strength of higher payouts and interim working results.

The energy, barring the National and Pakistan Refinery, cement and some bank shares were in the forefront of losers on persistent selling by some punters and speculative traders.

It appeared to be a repeat performance of Wednesday's session as the KSE 100-share index in early session broke the barrier of 5,500 at 5,519.00 but then failed to sustain the same in the absence of follow-up support and institutional selling and fell from the day's peak level to close 12.49 points lower at 5,452.87.

Although, the interim dividend announcements by the Hub-Power, Fauji Cement and the Pakistan PTA, whose board of directors met on Thursday along with other two dozen companies were missing. Higher sales have raised the hopes of a better return on investment by the end of the year. The Hub-Power, however, showed sharp rise amid hopes of better results during the next quarter.

But the Engro Chemical did not disappoint its stakeholder and announced the second interim cash dividend at the rate of 20 per cent, making the total for the last nine months to 45 per cent as it already had paid first interim of 25 per cent.

Analysts said the first quarter working results of some leading companies were well above their original estimate and in a way could well prove a sustaining factor behind the market's future upward journey.

The heating up of the political scenario did worry leading investors amid fears that anything could happen after the Opposition had taken a rigid position on some of the constitutional issues including the President's uniform, they said.

"A terribly shaky behaviour of the leading institutional traders reflected this future phenomenon as they played safe and on small margins", said a leading broker", adding they entered the market like a hurricane and left it in the same speed the very next day, leaving others guessing what ailed them".

As far as an objective situation indicated, the market appeared in a very good shape as both the KSE index and the price flare-up backed by higher corporate payouts were at their best for the near-term but some unseen fears were lurking in the investor mind, he said.

The steep increase in gold price to well over Rs8,000 per 10 grams and the sudden strength of the US dollar showed that a formidable section of investors were still seeking a refuge in some most viable "Safe Havens".

Leading gainers were led by the Valika Art Fabrics, the Nestle MilkPak, the Abbott Lab, Mehmood Textiles, Berger Paints, the AKD Securities, the National Refinery and the Pakistan Refinery.

But the largest rise was noted in the Lakson Tobacco after an initial rise, Wyeth Pakistan, Dawood Herucles, Abbott Lab, Nestle MilkPak, and some others.

Losers were led by the Arif Habib Securities, the PSO, Milllat Tractors, Gatron Industries, Lakson Tobacco, Unilever Pakistan, the EFU Life, Atlas Honda, and Atlas Battery, followed by Dawood Hercules, Pakistan Cables, Gul Ahmed Textiles, Bhanero Textiles, Security Papers, and some others.

FORWARD COUNTER: With the exception of the PTCL, Engro Chemical, Fauji Fertiliser and some others, which managed to finish higher with good to modest gains, most active among them including the OGDC, the PPL, the PSO, the D.G. Khan Cement suffered modest decline after having passed through either-way movements.