KARACHI, Sept 29: Stocks on Friday fell modestly from the higher levels as a section of investors took profits at the available margins but all sale offers were readily absorbed both the rise and the fall. The KSE 100-share index was off 16.21 points at 10,512.48 points.

The pruning on the overvalued shares reflects weekend technical adjustments rather than panic unloading by any of the participants as the move is aimed at enlarging portfolios when trading resumes next week.

Dividend announcements by Pak Datacom of final cash at 25 per cent (interim 15 per cent already paid) plus bonus shares of 10 per cent, and 15 per cent cash and 10 per cent bonus by Searle Pakistan were on the higher side of analysts’ predictions and were well received in the market.

After opening higher, what the dealers called, the extension of the overnight run-up, the KSE 100-share index finished reacted on late selling in the leading base shares and was marked down by 16.41 points at 10,512.48. The session’s peak level was touched at 10,562.69 points.

The KSE 30-share index also fell 28.89 points and was last quoted at 13,077.17, but it appears to be a technical adjustment in line with the 100-share index rather than a steep fall in any of the shares in its fold.

All the leading base shares, including MCB, National Bank, OGDC, PTCL and some other fell in unison on stray selling but there were willing buyers at the dips and as a result major fall was averted.

But on the other hand PICIC, Bank Alfalah and Faysal Bank remained in active demand on reports of merger and foreign buying by some of the leading foreign asset management funds, analysts said.

“There is a loud whispering in the market that PICIC, Faysal Bank and Bank Alfalah under squeeze by the agents of foreign investors in an apparent effort to corner their floating stocks for eventual buyout or hostile takeover,” they added.

That is perhaps why they did not toe the market’s general line of action and remained in strong demand at their attractively lower levels.

Meanwhile, the Security and Exchange Commission of Pakistan (SECP) has phased out the limits of the Continuous Financing System (CFS) in four stages instead of earlier announced Rs55 billion just in one go. The target of Rs55 billion would now hit by Nov 30, 2006.

The first, second, third and fourth phase limits are as under: Rs30 billion from Rs25 billion by Nov 6; Rs37 billion by Nov 13; Rs45 billion by Nov 20; and Rs55 billion by Nov 30.

However, the impact of the phased out CFS will be known during the next couple of weeks and how the enhanced financing facility affect the daily trading, brokers said.

Among the leading gainers, Unilever and Wyeth Pakistan were notable, up by Rs19 and Rs111, respectively, followed by Siemens Pakistan, Sitara Chemicals, Pak-Suzuki Motors, HinoPak, Ghani Glass, National Foods, Attock Petroleum, Nishat Mills, Colgate Pakistan, Union Bank and Thal Industries, which posted gains ranging from Rs4.05 to Rs9.55.

Treet Corporation and IGI Insurance were leading among the losers, which fell by Rs9 and Rs11, respectively. Other losers included United Sugar, National Refinery, PSO, Murree Brewery, Rafhan Maize and Millat Tractors, off by Rs4 to Rs7.

Trading volume fell to 151m shares from the previous 243m shares as losers held a modest edge over gainers at 138 to 128, with 34 shares holding on to the last levels.

PICIC, which is well underway its merger programme led the list of actives, up Rs1.30 at Rs72.95 on 16m shares, followed by Bank Alfalah, higher by Rs2.05 at Rs46.25 on 14m shares, National Bank, lower by Rs1.60 at Rs253.25 on 12m shares, MCB, off one rupee at Rs255 on 11m shares, Faysal Bank, up 75 paisa at Rs65.35 on 6m shares, OGDC, off 50 paisa at Rs127.85, and PTCL, easy 30 paisa at Rs41.15.

Other actives were led by DG Khan Cement, off Rs1.50 on 8m shares, followed by Lucky Cement, up Rs1.70 on 5m shares, and Fasuji Cement, steady by 10 paisa also on 5m shares.

FORWARD COUNTER: PICIC also led the list of actives on this counter, up 89 paisa at Rs67 on 3m shares, followed by DG Khan Cement, off Rs1.10 at Rs87.90 on 3m shares, and MCB, off Rs2.56 at Rs256 on also on 3m shares.