KARACHI, July 26: The stock market on Wednesday turned easy as leading shares came in for stray profit-selling at the higher levels under the lead of leading oil and bank shares but the underlying sentiment remained uppishly inclined owing to presence of support at the dips.

Analysts said it was a technical breather long overdue, as foreign funds and local punters who have been active buyers during the last couple of sessions indulged in profit-selling to meet their delivery obligations.

That is perhaps why higher interim dividends by Engro Chemical and Unilever Pakistan at Rs3 and Rs65 per share of Rs10 and Rs50, respectively, failed to enthuse investors.

The KSE 100-share index suffered a modest decline of 57.46 points at 10,343.67 after touching the session’s high of 10,413.52, as some of the leading index shares attracted selling under the lead of OGDC.

Trading volume, however, suffered a sharp contraction at 167m shares as big market players kept to the sidelines and did not actively participate in the proceedings.

Some of the leading foreign funds have been very active on the oil sector, notably Pakistan Petroleum ahead of its sell-off, followed by OGDC on reports of its upcoming GDR and Pakistan Oilfields and kept the market in a positive mood. Bank and cement shares evoked sympathetic buying amid market talk of higher corporate earnings and good payouts.

During the last couple of sessions, the index has risen sharply higher by about 400 points aided by the strength of oil shares and needed correction, which came in the form of profit-selling.“Anticipatory and speculative buying remained confined to some safe havens as investors were not inclined to go beyond them apparently awaiting some positive decision on short-selling on the forward counter, notably in the August contracts,” analysts said

There was a loud whispering in the market that the KSE board is expected to meet shortly to decide whether or not to permit blank or short selling in future contracts.

But leading analysts said the board might think twice before opting for a positive decision on the issue until the ongoing probe on the March 2005 market crash is completed.

Although minus signs dominated the list, Unilever Pakistan and Wyeth Pakistan managed to finish higher by Rs20 and Rs25, respectively, followed by Javed Omer, International Industries, Shell Pakistan, Glaxo-SKF, Rafhan Bestfoods, Attock Petroleum, Dawood Hecules and Treet Corporation, up by Rs5.10 to Rs10.

IGI Insurance and Siemens Pakistan fell by Rs13.75 and Rs25, respectively. Other prominent losers included Arif Habib Securities, Premier Sugar, Abbott Lab, Zulfiquar Industries, Securities, Pakistan Hotels and Lakson Tobacco, off Rs4.95 to Rs10.

Trading volume suffered a sharp contraction in the absence of strong fund buying and fell to 167m shares from the previous 255m shares as losers forced a comfortable lead over gainers at 181 to 114, with 44 shares holding on to the last levels.

OGDC led the list of actives, lower by 60 paisa at Rs140.85 on 18m shares, followed by Lucky Cement, up Rs1.40 on expansion news at Rs111.90 on 16m shares, Dewan Cement, higher by one rupee at Rs17.55 on 11m shares, DG Khan Cement, easy 15 paisa at Rs98.70 on 10m shares, Pakistan Oilfields, up Rs2.65 at Rs344.15 on 9m shares, National Bank, lower Rs1.50 at Rs223.10 on 7m shares and Pakistan Petroleum, off Rs3.20 at Rs243.75 also on 7m shares.

Other actives included Telecard, lower 50 paisa on 8m shares, Azgard Nine, up Rs1.30 on 6m shares, and Fauji Cement, unchanged also on 6m shares.

FORWARD COUNTER: Both settlements of PTCL came in for active selling and ended lower by 88 and 92 paisa at Rs42.50 and Rs42.98 for the maturing July and August contracts, respectively on 3m and 4m shares, while Pakistan Oilfields rose by Rs3.30 at Rs348 on 2m shares, and DG Khan Cement showed a fractional fall of 14 paisa at Rs99.65 also on 2m shares.