KARACHI, May 16: Stocks on Wednesday suffered widespread pruning as investors took profits at the inflated levels on all the blue chip counters but analysts differ on the snap reaction.

Some said pressure on liquidity after the CFS hovered around its ceiling limit followed by selling in the pivotals was the chief reason behind the market slide but some other said it was an extended technical correction.

After having fallen by 334 points between the session’s low and high at 12,114.00 and 12,451.00 respectively, the KSE 100-share index finally ended with a decline of 112.14 points at 12,258.85.

The market’s mid-session recovery from the early lows was attributed to fresh buying in the oil shares on reports of higher world prices and increasing demand for Pakistan cement in the regional countries.

But a leading stock analyst Hasnain Asghar Ali says worries on the CFS front after the ceiling is again touched seem to be the one of the main cause behind the sell-off in some of the leading CFS-based shares.

“Rumours that the number of shares currently in the CFS list is being reduced apparently to keep the limit at the existing Rs55bn also contributed to the market decline,” he added.

Ahsan Mehanti, stock analyst, said worries about the law and order situation after the Peshawar suicide attack and the tension in Karachi also took their toll.

However, selective support figured prominently on a number of counters after mid-session, which enabled the market to recover from the early lows.

“I don’t think bears could push the market further down at this stage despite the fact that external news are not that encouraging, notably the judicial crisis, the market has other supporting factors to keep it in a good shape”.

Among the leading gainers, Rafhan Bestfoods and HinoPak Motors were leading, up by Rs9 and Rs14.50, followed by PSO, Faisal Spinning, Fazal Textiles, JS & Co and JS Global, which posted gains ranging from Rs3 to Rs6.

Prominent losers were led by Nestle Pakistan and Siemens Pakistan, off Rs35 and Rs71 respectively. Others, which suffered sharp setback included EFU General, Thal Jute, National and Pakistan Refinery, Shell Pakistan, Mari Gas, Pakistan Engineering, Millat Tractors, Engro Chemical, Packages, Gillette Pakistan and Attock Petroleum, which suffered fall ranging from Rs5 to Rs12.

Trading volume suffered a modest fall at 229m shares as compared to 283m shares a day earlier but losers forced a strong lead over the gainers at 221 to 106, with 32 shares holding on to the last levels.

Fauji Fertiliser topped the list of actives, lower by 60 paisa at Rs36.25 on 17m shares, followed by OGDC, off 60 paisa at Rs118.60 on 16m shares, Bank Alfalah, easy by 80 paisa at Rs55.10 on 13m shares, D.G. Khan Cement, off Rs2.65 at Rs95.45 on 9m shares, National Bank, lower Rs2.40 at Rs238.40 on 8m shares, Nishat Mills, up by 25 paisa at Rs129 also on 8m shares and Engro Chemical, sharply lower by Rs6.95 at Rs211 on 7m shares.

Other actives were led by Lucky Cement, lower by Rs2.25 on 9m shares, Javed Omer & Co, up by Re1 on 8m shares and Bank of Punjab, lower by 30 paisa on 7m shares.

FORWARD COUNTER: National Bank led the list of actives on this counter, off Rs3.50 at Rs238 on 7m shares, followed by Lucky Cement, lower Rs2.60 at Rs97.40 on 6m shares, Nishat Mills Mills, easy by five paisa at Rs128.35 also on 6m shares.