KARACHI, Sept 6: Stocks on Thursday reacted from the early week inflated levels on late selling triggered by rumours that national and provincial assemblies may be dissolved apparently to pave the way for a national government.

After opening higher, the KSE 100-share index was quoted lower by 96.48 points and ended at the session’s low of 12,567.38.

“The rumour was not relevant to the prevailing situation as the presidential elections are due after Sept 15,” said an analyst, adding “the market sometime follow the rumours on the whims of small investors who hasten to bow out without having second thought”.

But the saner ones kept to the sidelines and did not buy the idea as was reflected in the sharp fall of the turnover figure.

“The political uncertainty, which was expected to end after the signing of proposed Musharraf-Benazir power sharing deal again gripped the market leading to hasty selling,” said a leading stock analyst Ahsan Mehanti, adding “although till the closing bell all was calm in Islamabad, but it left behind a large list of casualties selling at the fag-end of the session”.

The rumours seem to have been given credence owing to recent negative political developments including law and order situation, he added.

Trading resumed on a higher note, what the analysts called, spillover of the overnight demand and the KSE 100-share index early breached through the barrier of 12,700 but late selling pushed it down to close with a fall of 96.48 points at 12,567.38.

The KSE 30-share index on the other hand suffered a fall of 172.27 points at 15,393.09 points.

The heavy weight trio - MCB, National Bank and OGDC - was down on active profit-selling and so did the index.

But Ashraf Zakaria was of the view that there could be many irritants between the lip and the cup and shrewd investors knew it very well, adding “everyone is looking out scapegoats to bail themselves out from the current impasse.”

There was a loud whispering in the market that some big ones who had made massive commitments at the inflated rates on some of the blue chip counters prior to the recent decline were pushing prices higher to trap their weaker links, some other said.

However, no one could deny the fact that higher cash dividend and bonus shares should have worked wonders in the normal trading conditions but not in the prevailing situation, they added.

Among the top gainers, JS & Co and Pakistan Services were leading, up by Rs37.30 and Rs25.10, followed by Javed Omer, Adamjee Insurance, Central Insurance, Fazal Textiles, Pakistan Engineering, KSB Pumps, Noon Pakistan, Sitara Chemicals after the announcement of cash dividend plus bonus shares, National Foods, Colgate Pakistan and Pakistan Resource Co, which posted gains ranging from Rs7.25 to Rs12.10.

Unilever Pakistan and Nestle Pakistan, off by Rs50 and Rs45 followed by MCB, Lakson Tobacco, Gillette Pakistan, National Bank, Murree Brewery, JS Global and Pakistan Services, off by Rs4.30 to Rs25.10.

Trading volume fell to 265m shares from the previous 327m shares as losers held a lead over the gainers at 173 to 128, with 38 shares holding on to the last levels.

D.G. Khan Cement topped the list of actives, up by Rs1.60 at Rs103 on 29m shares followed by Lucky Cement, steady by 10 paisa at Rs118.50 on 26m shares and National Bank, off Rs4.30 at Rs241.45 on 17m shares.

Arif Habib Securities, lower 75 paisa at Rs123.10 on 12m shares, Bank of Punjab, firm by 10 paisa at Rs101.90 on 11m shares, OGDC, easy by 75 paisa at Rs109.25 on 9m shares and Pakistan Oilfields, off Rs2.45 at Rs301.55 on 9m shares.

Other actives were led by TRG Pakistan, lower 10 paisa on 19m shares, Bosicor Pakistan, up by 60 paisa on 16m shares and Engro Chemical, off 65 paisa on 9m shares.

FORWARD COUNTER: Lucky Cement led the list of actives on the cleared list, lower by 45 paisa at Rs118.60 on 13m shares followed by D.G. Khan Cement, up by Rs1.15 at Rs103 on 8m shares and National Bank, off Rs5.25 at Rs242 on 7m shares.