KARACHI, Aug 13: Stocks finished with extended losses on Wednesday as investors played on both sides of the fence. They were cautious to interpret the press reports about the possibility of resignation by the president on the Independence Day and the record low hit by the rupee at Rs76 in the kerb market.

But the perception that his exit will end the current political uncertainty evoked a good bit of short-covering on a selected counters, enabling the index to recoup bulk of an early fall of 261 points. President Pervez Musharraf had said that the next two or three days could be very crucial and analysts said it could well be his pointer to his possible exit on the Independence Day.

The fresh bull-run on the US dollar weakened the rupee to its lowest level so far at Rs75.50 and Rs76 in the open market for buying and selling respectively and analysts predict this could be the last bear onslaught on the value of the rupee.

Unlike the overnight steep decline, the KSE 100-share index shed only 61.23 points at 9,902.35 as compared to 9,963.58 a day earlier on strong fund buying in the leading base shares, notably MCB Bank and National Bank.

Analysts said the general perception was that the president’s exit would bring normalcy in the corridors of power. But others felt that the rupee would remain weak until sanity returns to the financial turmoil.

“The rupee has depreciated by 20 per cent against the US dollar this year having negative bearing on the share values more than one ways triggering flight of capital to other markets,” analyst Tabish Hasan said.

“Every thing is expected to be in order after the investor’s worry with regard to the prevailing political uncertainty ends,” said Ahsan Mehanti. “The coalition government then will opt for assigned official task to boost economy and contain inflation”.

The future direction of the market will be known on Friday when it reopens after the Independence Day holiday as by that time the situation will be clear to an extent, he added.

Shell Pakistan and Colony Sugar posted fresh gain of Rs19.21 and Rs38, followed by MCB Bank, Millat Tractors, Tri-Pack Films, Adamjee Insurance, JS Global, JS & Co and EFU Life, which posted gains ranging from Rs5 to Rs15.98.

National Foods and Pakistan Oilfields came in for fresh selling and fell by Rs14.70 and Rs13.49, respectively. Other prominent losers included Thal Industries, New Jubilee Insurance, Dawood Hercules, Glaxo-SKF, Packages, Clover Pakistan, Sanofi-Aventis, Mari Gas, EFU General and PSO, off by Rs5.50 to Rs11.90.

Trading volume fell further to 69m shares from the previous 82m shares as losers held a strong lead over the gainers at 154 to 87, with 25 shares holding on to the last levels.

The active list was topped by National Bank, higher by Rs4.94 at Rs113.34 on 7m shares followed by Arif Habib Securities, off Rs2.50 at Rs111 on 5m shares, OGDC, sharply lower by Rs3.29 at Rs107.65, Pakistan Oilfields, lower by Rs13.49 at Rs256.31 on 3m shares, J.S. & Co, higher by Rs16.16 at Rs339.36 also on 3m shares, Engro Chemical, easy by Rs1.18 at Rs185.50 also on 3m shares and MCB Bank, sharply higher by Rs7.55 at Rs275.75 on 2m shares.

Other actives included Zeal Pak Cement, easy by three paisa at Rs1.44 on 3m shares, NIB Bank, steady by one paisa at Rs8.84 also on 3m shares, and D.G. Khan Cement, off Rs2.32, at Rs44.22 on 2m shares.

FORWARD COUNTER: National Bank came in for active support at the lower levels and led the list of actives on the cleared list, up by Rs5.31 at Rs113.71 on 2m shares followed by JS & Co, higher by Rs16.35 at Rs343.35 also on 2m shares and OGDC, off Rs2.25 at Rs108.40 on 2m shares.

MCB Bank followed them sharply higher by Rs6.50 at Rs274 on 2m shares and Engro Chemical, steady by 37 paisa at Rs187.52 on 1m shares.

DEFAULTER COMPANIES: Invest Bank came in for active support on this counter, up by 40 paisa at Rs6.50 on 0.304m shares followed by Norrie Textiles, unchanged at Rs1.55 on 0.169m shares. Others were traded modestly.

DIVIDEND: Engro Chemical cash interim 20 per cent, BOC Pakistan, cash interim 30 per cent.