KARACHI, Oct 16: Renewed heavy buying in Hub-Power featured the trading in an otherwise easy stock market where bears fought back to tilt the balance in their favour after having made border clashes with India an excuse.

After an early firm start, bears took control of the market and indulged in profit-selling on the blue chip counters at the higher levels, although the underlying sentiment at no stage signs of distress indicating that the bulls are full control of the situation.

Most analysts believe it was a technical correction rather than the market’s reversal as despite war in Afghanistan and protests against the US bombing, economic fundamentals including the revival of foreign buying in the wake of Colin Powell’s visit appear positive.

The KSE 100-share index was down 6.95 points at 1,231.08 as compared to 1,238.03 a day earlier, reflecting the weakness of leading base shares including PTCL, PSO and Engro Chemical.

The day’s notable feature was that Hubco came in for renewed strong speculative buying followed by the management’s announcement about the lenders approval of 17 per cent interim dividend and book closure and annual general meeting.

It turned out a massive activity of 74 million shares about a half of the total volume and saved the market from the renewed bear attack. Other MNCs also showed further improvement on selective support.

Local background news in the backdrop of an intriguing silence on the civil unrest front and positive outcome of Colin Powell’s visit and his promise to convince president Bush to end Pakistan’s economic woes through new credit lines were encouraging but reports from across the border worried investors and weakers among them indulged in selling.

But the selling was well-absorbed at the fall as the general outlook about the market’s future trend is optimistic and brokerage houses are not inclined to keep to the sidelines.

“It is partial profit-selling and partial consolidation”, stock analysts at a prominent brokerage house claim, adding but there is “nothing to suggest that the current run-up is overdone”.

Profit-taking is part of the game as it adds to the strength of the market rather than halting its upward drive, they add.

Prominent gainers were led by Millat Tractors, Jahangir Siddiqi & Co, and ICI Pakistan, up by Rs.1.40 to 2.25, while among the losers, PSO and Pakistan Oilfields were leading, off Rs.1.85 to 3.00. Javed Omer, Shahtaj Textiles, and Adamjee Insurance rose by 80 to 90 paisa.

Other losses and gains were mostly fractional, although leading shares such as Fauji Fertiliser, Dewan Salman, EFU Lifer Insurance and Dadex Eternit fell by 60 paisa to one rupee.

Trading volume rose to 149 million shares from the previous 126 million shares as losers forced a strong lead over the gainers at 75 to 49, with 42 shares holding on to the last levels.

Hub-Power topped the list of most actives, up 35 paisa at Rs.17.20 on 74m shares followed by PTCL, easy 20 paisa at Rs.15.50 on 32m shares, PSO, off Rs.1.85 at Rs.105.25 on 11m shares, Engro Chemical, lower 30 paisa at Rs.48.30 on 6m shares, ICI Pakistan, up Rs.1.40 at Rs.35.15 on 5m shares, Adamjee Insurance, higher Rs.2.00 at Rs.37.25 on 4m shares and MCB, lower 45 paisa at Rs.22.85 on 2m shares.

Other actives included Sui Northern, easy 10 paisa on 2.666m shares, Fauji Fertilizer, off 85 paisa on 1.832m shares and Dewan Salman, lower 60 paisa on 1.627m shares.

FUTURE CONTRACTS: With the exception of Hubco, which rose in sympathy with its ready counterpart, up one rupee at Rs.17.15 on 0.306m shares, other speculative issues ended lower or unchanged, Fauji Fertiliser and PSO being the largest losers, off 85 paisa and Rs.1.75. The latter was subjected to two emergency clearing as the single-session fall was well above the ceiling rate of Rs.1.50.