KARACHI, Jan 15: Shares on the Karachi Stock Exchange on Tuesday turned in a highly erratic price movements as investors played on both side of the fence under the cross-current of positive and negative news.

But at no stage, the underlying sentiment showed signs of weakness as there were more buyers than sellers at the dips, notably on the blue chip counters.

After early rising by about 17 points, what the dealers called, the follow-up of overnight pent-up demand, the KSE 100-share index finished lower by 1.75 points at 1,426.21 as compared to 1,427.96 a day earlier.

The early run-up was attributed to Colin Powell’s arrival tomorrow, which the dealers presumed, could lead to defusing the tension between the two neighbours and allaying fears of war.

However, the day’s highlight was provided by a virtual bull-run on the provisionally listed shares of National Bank on massive buying owing to proximity of its formal listing on the stock exchanges. About 8m shares changed hands at an average rate of Rs.13.55 as leading parties tried to grab its floating stock. It touched highest and lowest at Rs.13.89 and 12.40 respectively.

On the ready board, trading resumed on a bullish note on renewed buying triggered by hopes that tension on the borders could ease despite not very encouraging response from the Indian side to the president’s peace overtures.

But after mid-session leading institutional traders moved in and indulged in massive selling at the inflated levels on the blue chip counters. The selling was, however, well absorbed.

“The market should have eased sharply but heavy buying in Hub-Power kept investors in the market as an enthusiastic buyers,” stock analysts at the W.E.Financials said. “Sympathetic alternative bouts of buying and selling did not allow the market to show signs that the run-up was overdone.”

A massive activity of 102m shares, about a half of the total in it, reflects how the rumours of a possible interim dividend could push its price to new highs.

“We don’t believe that the run-up has run its course,” stock analysts at AHAL said. “The market is passing through a consolidation phase, which lead it to new peak levels.”

Most of the either-way price changes were fractional, barring Ibrahim Textiles, Sapphire Textiles, Masood Textiles, Millat Tractors, Ferozsons Lab, Sitara Chemicals, Cherat Papers, Packages and Lever Brothers posting gains ranging from one rupee to Rs.4.

Losers were led by Wyeth Pakistan, which resumed its downward trend on renewed selling, off Rs.10, followed by Blessed Textiles, Pakistan Tobacco, Shell Pakistan, BOC Pakistan and Fateh Industries, which suffered fall ranging from one rupee to Rs.3.65.

Trading volume crossed the 200m share mark at 203m shares thanks to heavy turnover in Hub-Power as gainers maintained a fair lead over the losers at 94 to 73, out of 210 actives.

Hub-Power topped the list of most actives, sharply higher by Rs.55 paisa at Rs.20.35 on 102m shares followed by PTCL, easy five paisa at Rs.16 on 46m shares, PSO, off Rs.3.65 at Rs.100.25 on 8m shares, FFC-Jordan Fertilizer, steady five paisa at Rs.4.40 on 7m shares and Sui Northern, easy 20 paisa at Rs.10.10 on 6m shares.

Other actives were led by Engro Chemical, off 45 paisa on 3.953m shares, Dewan Salman, up 60 paisa on 3.372m shares, Fauji Fertilizer, lower 20 paisa on 2.624m shares, Adamjee Insurance, easy 25 paisa on 2.236m shares and Nishat Mills, lower 15 paisa on 2.071m shares.

FUTURE CONTRACTS: Forward counter also showed mixed trend where PSO came in for active selling and was marked down sharply lower by Rs.4 at Rs.100.50 on 0.507m shares, while Hub-Power and Dewan Salman rose by 64 and 66 paisa at Rs.20.45 and 12.51 on 5.662m and 88,000 shares respectively.