KARACHI, Aug 25: Stocks on Monday finished with an extended fall on late selling as the early rally failed to get through in the absence of follow-up support both from the leading investors and the institutional traders at the dips. The KSE 100-share index shed 36.22 points at 4,381.99.

The correction was, however, mild and did not cause major changes in the ruling prices of most of the overvalued shares thanks to the presence of selective support.

An idea of the market’s erratic behaviour may well be had from the fact that it failed to sustain a good part of initial gains owing to market talk of extension in the current correction.

By mid-session, the KSE index was higher by 30 points rising well above the barrier of 4,400 points but active profit-selling toward the fag-end of the session by both some leading punters and weakholders pushed it lower to finish around 4,381.99, off 36.22 points.

Most of the leading shares, including PTCL, Hub-Power, PSO and many others remained under pressure and ended with sharp fall on heavy selling but a good number of second-liners maintained their upward drive under the lead of cement, chemical and leading textile shares.

A cash dividend of 30 per cent plus bonus shares of 40 per cent by Clover Pakistan was well-received in the market as was reflected by a sharp rise of Rs6.45 in its shares at Rs92.95 against its face value of Rs10.

But second interim of 20 per cent, with 40 per cent first already paid by Dawood Hercules on the other hand triggered fresh selling in its share, which fell by Rs5.25 at Rs164.

Bosicor Pakistan, a new refinery in the private sector, which is expected to start commercial production came in for fresh strong support and rose by Rs2.30 at Rs33.40 on 42m shares. Its first consignment of crude oil has arrived a couple of days earlier.

For the last three sessions, investors appear to be a bit hesitant to probe new highs above the crucial index level of 4,400 points and resort to selling when the 4,400 point level is crossed, brokers said adding “it may not be the end of the speculative rise as some more encouraging dividend news are due.”

But some others believe the market has already entered the danger zone after it crossed the index level of 4,000 and may encounter a big sell-off any day in the form of technical correction.

“A sudden halt in the stimulating news from the news makers unnerved the jobbers and day traders who hastened to get out of the market,” said a broker.

Bulls, who have taken long positions on selected counters at the highly inflated levels may not allow the bear attempts to tilt the price balance in their favour at least for the near-term, says a leading stock analyst.

With massive amounts of liquid cash floating here and there are finding their way into the share business in the absence of other attractive modes of gainful investment and the bulls have the reasons to be optimistic, he says.

“Only some big negative news from the political or the economic front could cause major dents in the prevailing price structure,” brokers said adding “the row over the LFO is there for the last couple of months but investors seem to have digested its negative fallout.”

Although minus signs dominated the list, a good number of leading shares managed to post fresh gains under the lead of Aventis Pharma, Glaxo-SKF, Shell Gas, Lakson Tobacco, and Javed Omer, which rose by Rs8 to Rs30.15.

Other notable gainers were led by Dreamworld, BOC Pakistan, Shezan International, BOC Pakistan, Gillette Pakistan, Pakistan Refinery and Pakistan Cables, which rose by Rs4 to Rs6.

Losers were led by Wyeth Pakistan, off Rs72, followed by report of omission of interim dividend followed by Island Textiles, Pakistan Reinsurance Co, Al-Abid Silk, PSO, Shell Pakistan, Attock Refinery, Atlas Battery, Atlas Honda and Packages, which suffered fall ranging from Rs4 to Rs8.65.

Trading volume fell to 459m shares from the previous 531m shares at the last weekend as losers maintained a fair lead over the gainers at 203 to 163, with 58 shares holding on to the last levels.

PTCL again topped the list of most actives, lower 35 paisa at Rs38.25 on 82m shares followed by Hub-Power, easy 20 paisa at Rs43.80 on 77m shares, Bosicor Pakistan, sharply higher by Rs2.30 at Rs33.40 on 42m shares, D.G. Khan Cement, up 50 paisa at Rs41.60 on 31m shares and Sui Northern Gas, higher by 35 paisa at Rs45.75 on 20m shares.

FORWARD COUNTER: Speculative issues on the forward counter also followed the lead of their counterpart in the ready section and fell sharply under the lead of PSO, off Rs3.95 at Rs290.30 on 5m shares.