KARACHI, July 29: Stocks on Tuesday suffered modest pruning at the inflated levels but analysts are not inclined to entertain bearish ideas encouraged by some positive developments on the political front and a loud whispering of higher corporate dividends by some leading companies. The KSE 100-share index fell by 14.03 points at 3,834.55.

The profit-selling, which covered some of the leading shares also was essentially technical and in no way reflected some late rethinking on the new price valuation rules on stock trading, which became effective from July 28.

The KSE 100-share index reacted to finish lower by 14.03 points at 3,834.55 as compared to 3,848.58 on Monday, reflecting the weakness of some leading base shares, including PTCL.

The opening was higher, what the dealers called, the extension of the overnight run-up but when the trading resumed after the power failure bears took the floor and indulged in selling and pushed the market into the downward territory.

“I don’t think bears have the will and the courage to reverse the market trend at this stage,” a leading stock analyst predicts. “Bulls will not allow any deeper bear inroads into their domain until reaching the target of 4,000 index level.”

Reports of higher interim profits by some of the leading companies, including mega issues such as Fauji Fertilizer, Engro Chemical, Faysal Bank, ICI Pakistan and Nishat Mills could keep the market in a good shape not to speak of some positive developments on the political front.

Barring ICI Pakistan whose board will meet on Aug 6, all others are expected to announce their working results today and July 30 and 31.

The selling in part also reflected switching operations from the one counter to the other, notably those where dividend announcements are due during the next couple of days.

On the political front, the MMA and the government appears to be close to an agreement after Sunday’s meeting, but the official reply to the former’s demands is still awaited. Much will depend on the President’s consent whether or not he accepts the timeframe of one year for his uniform, broker said.

“The MMA and the major opposition parties will be poles apart if the MMA shows flexibility on the LFO, including the President’s power to dissolve the assembly,” they said.

Leading gainers were led by Aventis Pharma, Bhanero Textiles, Island Textiles and Security Papers, which posted gains ranging from Rs6.75 to 10.10 followed by 9th ICP, Jahangir Siddiqui Bank, Ahmed Hassan Textiles, Blessed Textiles, Kohat Cement, Gatron Industries, Atlas Battery, HinoPak Motors, Pakistan Cables and AKD Securities, up Rs3 to Rs5.95.

Prominent losers included Gul Ahmed Textiles, Sitara Energy, Glaxo-SKF, Clover Pakistan, National Refinery, Millat Tractors, IGI Insurance, Packages, and Shezan International, off Rs3 to Rs6.40. But the largest decline of Rs13, 13 and Rs35, was noted in Unilever Pakistan, Javed Omer and Wyeth Pakistan, respectively.

Trading volume was maintained at the overnight level of 383m shares but losers forced a strong lead over the gainers at 202 to 183, with 54 shares holding on to the last levels.

Hub-Power, led the list of actives, up 30 paisa at Rs39.95 on 77m share, followed by Nishat Mills ahead of its board meeting, off Rs1.40 at Rs36.30 on 40m shares, D.G. Khan Cement, easy five paisa at Rs38.75 on 35m shares, PTCL, lower 10 paisa at Rs31.85 on 28m shares and PIAC, higher by 55 paisa at Rs27m shares.

Dewan Motors led the other actives, up 70 paisa on 21m shares, T.R.G. Pakistan, higher 40 paisa on 16m shares, PSO, off 75 paisa on 14m shares, Dewan Salman, easy five paisa also on 14m shares and Lucky Cement, lower 35 paisa on 12m shares.

FORWARD COUNTER: Hub-Power led the list of actives, up 20 paisa at Rs40.40 on 9m shares followed by PTCL, lower 25 paisa at Rs32.15 on 5m shares, Nishat Mills, off Rs1.50 at Rs36.50 on 4m shares, PSO, lower 75 paisa at Rs263.50 on 4m shares and FFC-Jordan Fertilizer, firm five paisa at Rs16.50 on 1.144m shares.