KARACHI, Aug 27: The KSE 100-share index on Monday breached through the barrier of 12,000 points at 11,955.26 on active profit-selling on all the blue chip counters and leading analysts said all was not well with the underlying sentiment which could cause fresh price erosions.

Offloading of long positions even on the blue chip counters will continue on one and other pretext, sometime on the rollover week and sometime on revision of OMCs commission, they said.

Sharp decline ranging from Rs15 to Rs26.90 in the share values of PSO, Shell Pakistan and Attock Petroleum, reflected that the commission adjustment was not well-received by managements of oil marketing companies.

The opening was, however, pretty promising on active follow-up support in some of the leading cement and other shares as the index early hit the session’s high at 12,134.83.

But late-selling in most of the base shares, notably OGDC, MCB, National Bank and some other pushed it down to a low of 11,944.22 as compared to weekend’s 12,053.37, off 98.11 points. The free float 30-share index also fell by 81.36 points at 14,338.58.

Analysts said uncertain future political outlook amid talk of national reconciliation did not allow investors to take long positions on any of the counters and everyone played safe and for good reasons too.

“The absence of foreign investors owing to prevailing political turmoil is very well reflected in the low daily volumes,” they said, adding “until the presidential election possibly by the middle of the next month investors will just mark time”.

But Ahsan Mehanti, a leading stock analyst, said there was possibility of a snap turnaround as many may not resist the temptation to cover positions at the lower levels.

“The National Bank at Rs225, MCB at Rs270 and OGDC at Rs105 are a good buy and ensure handsome capital gains for those who have the courage to take risks,” he said.

Analyst Ashraf Zakaria said there was no sign of ending to the prevailing political uncertainty and investors would think twice before going for a “big kill”.

The return of Sharif brothers could further heat up the political undercurrent that may leave behind more uncertain share market outlook, he added.

Cement shares, notably Lucky Cement and D.G. Khan Cement and some lower-priced bank shares Bank Alfalah and Askari Bank are expected to lead the market advance aided by peace on the political front, some others said.

Minus signs dominated the list under the lead of Pak-Suzuki Motors and Unilever Pakistan, off Rs18.55 and Rs40 followed by Lakson Tobacco, Javed Omer, Fazal Textiles, National Refinery, Sanofi-Aventis, Package, Tri-Pack Films and Grays of Cambridge, which were marked down by Rs6 to Rs12.65.

But on the other hand Bata Pakistan and Siemens Pakistan recovered from the previous lows and were quoted higher by Rs14.50 and Rs40. Other good gainers included EFU Life Insurance, Pakistan Engineering, Exide Pakistan, National Foods, Gillette Pakistan, Pakistan Resource Co and Adamjee Insurance, which rose by Rs5 to Rs12.50.

Trading volume dropped to 135m shares as compared to 205m shares at the weekend as losers held a fair lead over the gainers at 182 to 115, with 34 shares holding on to the last levels.

Bank Alfalah led the list of actives, up by 90 paisa at Rs43.75 on 14m shares followed by TRG Pakistan, unchanged at Rs13.10 on 13m shares, OGDC, lower by Rs1.70 at Rs104.90 on 6m shares, Lucky Cement, steady by 35 paisa at Rs107.10 also on 6m shares, Askari Bank, up by 50 paisa at Rs87.50 on 5m shares, National Bank, off Rs2.50 at Rs222.50 on 4m shares and MCB, lower by Rs2.95 at Rs267.25 on 4m shares.

Other actives were led by Security Leasing (preference shares), up by 40 paisa on 6m shares, Maple Leaf Cement, up by 40 paisa on 5m shares and PICIC Bank, up by 70 paisa also on 5m shares.

FORWARD COUNTER: MCB came in for active selling and was marked down by Rs3.30 at Rs267.95 on 5m shares followed by OGDC, lower by Rs2.10 at Rs104.80 on 4m shares and National Bank, off Rs2.90 at Rs222.50 also on 4m shares.