KARACHI, Aug 31: Stocks on Thursday failed to extend the overnight run-up as investors played on both sides of market and remained unsettled amid a judicious blend of positive and negative news.

Some analysts said it was a technical breather which came in the form of correction at the highly inflated levels notably on the oil counter and Indus Motors after the announcement of final cash dividend at the rate of 70 per cent.

The KSE 100-share index, however, opened on the higher side followed by reports that the SECP had announced that the MK-II would be available after September 30, under Continuous Financing System (CFS) with an increased cap of Rs40 billion.

But, the sources said, on subsequent reports that the number of shares under CFS Mk-II has been cut from 30 to 14 triggered selling by some of the leading investors, analysts said.

The immediate negative reaction was that the KSE share index fell by 200 points but late short-covering in some of the leading shares allowed it to close modestly lower, with a fall of 22.02 points at 10,064.13.

However, the general investor perception is that the increase in CFS financing cap and its extension up to Dec 31, 2006 is expected to give the needed boost to stock trading as larger availability of funds under the system could lead to higher volumes, they added.

Meanwhile, investors awaited the launch of KSE-30 shares free float index from today (Sept 1), in which MCB has the largest weightage of 11.06 per cent and National Bank, Pakistan Oilfields, Pakistan Petroleum and OGDC together have 30 per cent weightage.

The free float index seeks a greater role for the private sector leading shares, most of which are liquid as compared to the state-owned units whose floating stock is not easily available, floor brokers said.

Minus signs, therefore, managed to force a strong lead over the gainers at 162 to 94, but some of the inactive shares put on fresh gains under the lead of Grays of Cambridge and Pakistan Services, higher by Rs9.60 and Rs17.60.

They were followed by PICIC, Javedan Cement, Shell Pakistan, Pakistan Petroleum, Pak Datacom and Attock Petroleum, up by Rs3 to Rs6.20.

AKD Capital and Atlas Honda were leading among the losers, off Rs10.95 and Rs11.85. Other losers were led by PSO, Adamjee Insurance, Arif Habib Securities, Pakistan Oilfields, Indus Motors on post-dividend selling, Dawood Hercules, Pakistan Cables and Ferozsons Lab, which fell Rs4 to Rs10.55.

Trading volume fell sharply to 137m shares from the previous 223m shares owing to the absence of leading buyers and sellers.

Pakistan Petroleum came in for active support at the lower levels and rose further by Rs3.60 at Rs241.60 on 17m shares followed by D.G. Khan Cement, higher by Rs1.50 at Rs92.10 on 14m shares and OGDC, easy by 10 paisa at Rs129 on 10m shares.

PTCL, lower by 15 paisa at Rs42.35 on 8m shares, PICIC, higher by Rs3 at Rs63.10 on higher cash dividend of 10 per cent plus bonus shares of the same amount, and Pakistan Oilfields, off Rs5.75 at Rs336.50 on 5m shares.Other actives were led by MCB, lower 65 paisa on 9m shares, National Bank, up by 50 paisa also on 9m shares, Bank of Punjab lower Rs2 on 5m shares and Fauji Cement, easy 20 paisa on 4m shares.

FORWARD COUNTER: Pakistan Petroleum was also actively traded on the cleared list, higher by Rs3.60 at Rs243.20 on 5m shares, followed by D.G. Khan Cement, up 95 paisa at Rs92.85 on 3m shares and OGDC, lower 25 paisa at Rs126.55 also on 3m shares.