KARACHI, Feb 20: Stocks on Wednesday failed to extend the early run-up as a section of leading investors indulged in profit-selling amid fears that the transfer of power may not be that smooth in the backdrop of ‘quit Musharraf demand’ by the major contenders of power.

The KSE 100-share index hit new high at 14,829.58 points but ended well below the session’s high of 14,957.48.

After a higher opening, stocks, therefore, ran into profit-selling later followed by some rethinking on the future political set-up.

“Quit Musharraf demand by the PPP and the PML-N leaders seems to have put a brake on market’s upward thrust,” said a leading analyst, adding “the perception that the president’s denial to oblige them could lead to a showdown triggered selling.”

The massive volatility shown by the KSE 100-share index is also well reflected in this perception. At one stage, it was only 43 points short of its next target of 15,000 level and indications were that it may cross the Rubicon.

However, it was the highest level so far (previous 14,814.85 on Dec 24, 2007) of its career at 14,829.58 points, although it reacted from the early intra-session high of 14,957.48 points.

But then bears fought back and indulged in profit-selling in some of the leading base shares, pushing it down to close at 14,829.58,up only by 22.40 points. The free float 30-share index was up by 140.65 points at 8,088.91.

Leading analysts said investors have some second thought on the developing political scenario after the early victory euphoria faded.

Various conflicting comments on the transfer of power and its implications have forced investors to change their operational strategies until clear picture emerges on the political front.

“The elections did not end the protracted uncertainty as was expected despite the fact that people have spoken more eloquently than speculated,” said a broker, adding “whether or not it will end with the formation of a new government is anybody’s guess.”

That is perhaps why mid-session selling on the overvalued counters allowed leading base shares to finish with clipped gains under the lead of OGDC, National Bank, PTCL, Arif Habib Securities and some others.

Although minus signs dominated the list under the lead of Siemens Pakistan and Bata Pakistan, off by Rs76.85 and 22.00, followed by Engro Chemicals, Fazal Textiles, Mitchell’s Farms, IGI Insurance, Shell Gas (right shares) and National Foods, off by Rs5.50 to 21.50.

AKD Capital and EFU Life Assurance managed to put on fresh good gains amounting to Rs36.20 and 31.40, respectively. Other prominent gainers were led by PSO, BOC Pakistan, KSB Pumps, United Sugar, Shell Gas, Pakistan Services, Tri-Pack Films, MCB Bank, and Rafhan Maize, which posted gains ranging from Rs5.20 to 25.00.

Trading volume fell to 359m shares from the previous 375m shares as losers forced a strong lead over gainers at 214 to 123, with 45 shares holding on to the last levels.

Arif Habib Securities topped the list of actives, up by Rs3.60 at Rs182.20 on 39m shares, followed by PTCL, ahead of its board meeting on Feb 27, firm by Rs1.05 at Rs44.20 on 32m shares, National Bank, higher by Rs4.40 at Rs259.65 on 24m shares, Bank of Punjab, up by Rs2.20 at Rs103.70 on 22m shares, OGDC, off by Rs1.65 at Rs128.10 on 19m shares, Lucky Cement, steady by Rs1.20 at Rs127.55 on 17m shares, and Bank Al-Falah, higher by 60 paisa at Rs61.50 on 9m shares.

Other actives were led by Bosicor Pakistan, firm by 20 paisa at Rs20.75 on 11m shares, followed by Netsol Technologies, higher by Rs5.00 at Rs138.25 also on 11m shares and D G Khan Cement, steady by 30 paisa at Rs102.50 on 9m shares.

FORWARD COUNTER: MCB Bank came in for strong speculative GDR-linked support and rose by Rs18.10 at Rs440.65 on 10m shares, followed by National Bank, higher by Rs4.70 at Rs260.10 on 7m shares and PTCL, up by Rs1.05 at Rs44.25 on 5m shares.