KARACHI, June 21: Stocks on Tuesday failed to extend the overnight run-up and ran into selling at higher levels under the lead of oil shares but there were buyers at the dips.

Floor brokers said the market was in an overbought position after the index had risen by 300 points and needed a technical correction, which came in the form of profit-selling in most of the pivotals.

After having touched the recent high of 7,700.68 points earlier in the session followed by overnight spillover demand, the KSE 100-share index later finished with a sharp fall of 173.33 points or 2.20 per cent at 7,489.71 as compared to 7,663.04 a day earlier.

All leading base shares fell in unison on active selling, major losers among them being PSO, OGDC, Pakistan Petroleum, Pakistan Oilfields and PSO and took the index along with them in the minus column.

The buying euphoria associated with the PTCL sell-off to Etisalat of the UAE may not be over as market’s overbought position and technical demands attracted a good bit of profit-selling by most of the leading stakeholders.

Eyeing the payback period of five years, the Etisalat high-ups, after the approval of the sell-off deal by the cabinet, vowed to care more for the employees by not firing a single person. The post-privatization official statement by a spokesman for Etisalat hints at its future strategy, but how the striking workers view it would be known possibly by Wednesday.

Analysts said the market could attract further selling during the next couple of sessions, but the disinvestment of PTCL to an investor of a friendly country could well prove a takeoff point for the market for its future onward march.

However, the disturbing feature of the trading is that investors are not inclined to move out of the oil shares, considered as safe havens, which in turn has limited the market’s capacity to rely on other sectors, they said.

“The market falls if the oil giants fall and rises if they rise with or without supporting factors,” some others said and added that was why the “market lacks needed depth and in line with the whims of a few.”

Minus signs, therefore, dominated the list under the lead of Unilever Pakistan and National Refinery, which suffered fall ranging from Rs11.50 to Rs25. They were followed by EFU General, Pakistan Refinery, OGDC, Pakistan Oilfields, PPL, Suzuki Motors, HinoPak Motors, Berger Paints, Dawood Hercules, Mari Gas, Shell Pakistan and PSO, which suffered a fall of Rs4 to Rs10.10.

But on the other hand, Attock Petroleum and Pakistan Services managed to post gains of Rs6.35 and Rs7.50, respectively. Other good gainers included Clover Pakistan, Mehmood Textiles, Century Papers and Artistic Denim, up Rs2 to Rs5.

Trading volume rose to 313m shares from the previous 184m shares but losers forced a strong lead over gainers at 186 to 78, with 41 shares holding on to the last levels.

PTCL came in for active selling at the overnight rise and fell by Rs2 at Rs68.65 on 121m shares followed by OGDC, off Rs4.05 at Rs104.75 on 48m shares, National Bank, easy, Rs1.65 at Rs104.50 on 32m shares, DG Khan Cement, up 80 paisa at Rs58.10 on 23m shares, PSO, off Rs10.10 at Rs384.25 on 16m shares, Pakistan Petroleum, lower Rs5.40 at Rs219.75 also on 16m shares, and Pakistan Oilfields, off Rs5.20 at Rs271.75 on 11m shares.

Other actives were led by Fauji Cement, firm by 35 paisa on 7m shares, Lucky Cement, up Rs2.05 on 5m shares and Kot Addu Power, easy 15 paisa on 4m shares.

FORWARD COUNTER: PTCL also came in for active selling on this counter in sympathy with its counterpart in the ready section, and fell by Rs2.44 at Rs68.90 on 24m shares followed by Pakistan Petroleum, off Rs4.70 at Rs221 on 16m shares, and OGDC, lower Rs3.84 at Rs105.25 on 13m shares.