KARACHI, March 13: After breaching through the psychological barrier of 1,900 on heavy early buying, the KSE 100-share index failed to sustain this coveted level following rumour-related snap selling but the Rubican was at last crossed. It fell by about 28 points after rising by 30.

The correction was overdue but bears were looking for a logical excuse to sell the idea and for that they coined a rumour of a possible default by a Lahore-based broker who allegedly failed to honour his settlement commitments and may default.

Although there was no official word from the KSE highups on the rumours but brokers say it was spread by some vested interests for obvious reasons— to pull prices of some of the shares down and they to cover positions.

The KSE 100-share index, which reopened sharply higher came in for heavy mid-session battering reflecting the relative weakness of the leading base shares and fell by 27.61 points at 1,860.26 as compared to 1,887.87 a day earlier.

The general perception is that it has the potential to rise above the next chart point of 1,900, and what next will be determined by the ground realities on the financial and corporate fronts.

“But we don’t think that the snap reaction could be extended any farther,” stock analysts said. “The index will resume its upward journey even tomorrow on the strength of positive basic fundamentals.”

The law and order situation in the city after the killing of a number of doctors and their protest strike did affect the underlying sentiment amid fears that it could intensify sectarian strife but investors are inclined to follow their own dictates, they added.

“A prominent section of investors is eying the outcome of president’s Japan visit and the quantum of aid and trade concessions and will be back in the market during the next couple of days to resume their moping operations,” predicts a floor broker.

The late heavy selling in all the pivotals jolted a perfectly sound market heading to hit its new chart level of 1,900 points but presence of strong support at the dips halted the bear-run later.

Big gainers were led by Pak Reinsurance, up Rs.35 at Rs.523, Wyeth Pakistan, higher Rs.15 at Rs.270, Pakistan Oilfields, firm by Rs.8.60 at Rs.124.30, Universal Leather, up Rs.3.35 at Rs.48.45 and Dawood Hercules, higher Rs.2 at Rs.99.

Other good gainers were led by PICIC Commercial Bank, Bannu Woollen, Security Papers, Al-Abbas Sugar and Aventis Pharma, up Rs.1.30 to Rs.2.90.

Losers were led by Grays of Cambridge, off Rs.19 at Rs.306, Lever Brothers, lower Rs.8.90 at Rs.941.05, Shell Pakistan, easy by Rs.6.90 at Rs.226.10, PSO, lower Rs.3.75 at Rs.158.70 and Sapphire Textiles, off Rs.2.95 at Rs.40.

MCB, Adamjee Insurance, New Jubilee Insurance, Pakistan Refinery, ICI Pakistan, Reckit and Benckiser, Siemens Pakistan and some others, falling by Rs.1.45 to Rs.2.95.

Trading volume rose further to 240m shares owing to heavy selling the most actives as losers forced a strong lead over the gainers at 144 to 82, with 46 shares holding on to the last levels.

PTCL led the list of actives, lower 15 paisa at Rs.20.30 on 113m shares followed by PTA, easy by five paisa at Rs.6.70 on 19m shares, FFC-Jordan Fertilizer, off 50 paisa at Rs.6.50 on 16m shares, National Bank, lower 45 paisa at Rs.23.45 on 14m shares and Sui Northern, lower 80 paisa at Rs.14.80 also on 14m shares.

Other actives were led by PSO, off Rs.3.75 on 11m shares, KESC, lower 25 paisa on 6m shares, Hub-Power, easy 35 paisa on 5,464m shares, Dewan Salman, off Rs.1.05 on 5.373m shares and ICI Pakistan, lower Rs.1.70 on 5m shares.

FUTURE CONTRACTS: Forward counter also followed the lead of the ready section where PSO led the decline, off Rs.4.60 at Rs.159.60 on 4.100 shares, followed by MCB and ICI Pakistan, easy by Rs.1.20 and 1.70 at Rs.26.30 and Rs.51.