KARACHI, March 18: The stock market on Monday resumed on an easy note as jobbers indulged in hasty selling, fearing a political fallout of the terrorist attack on Islamabad church. The KSE 100-share index fell by another 26 points at 1,860.83.

Share values of most of the leading MNCs, however, remained under pressure and suffered fall ranging from Rs1.50 to Rs30 for Clriant Pakistan, BOC Pakistan, Shell Pakistan and Lever Brothers.

But larger decline was averted thanks to the presence of strong covering purchases at the lower levels amid predictions that the shakeout was psychological and bulls will be back after the market meets its technical demands.

However, the interesting feature was that the selling was confined only to jobbers, while leading investors held on to their positions but rather were buyers on certain counters at the lower levels.

The KSE 100-share index finished with an extended decline of 26.21 points at 1,860.83 as compared to 1,887.04 at the last weekend and could fall another 30 points or so before rebounding to its recent highs above the 1,900-point index level.

The index showed highly erratic fluctuations as after falling early, the mid-session saw it recouping most of the initial losses, but selling at the fag-end of the session again pushed it down to finish lower.

Almost all the leading base shares fell under the lead of PTCL, Hub-Power, and ICI Pakistan, the largest fall of Rs4 being in PSO.

“It was a judicious blend of both profit-taking and panic selling, but as the long-term outlook appears bullish there was no dearth of buyers at the decline,” a leading stock analyst at the Moosani Securities predicts.

After having risen by about 700 points just during the last two months, the market needed correction and that manifested itself in the form of profit-selling, he adds.

The same view is held by some other leading analysts, including at the W.F. Financials, AHRL and Aziz Fidahusein & Co. They said technical corrections in overbought markets was always considered a positive signs and the local stocks could hardly be an exception.

“Ground realities have altogether changed in the post-Afghan war era,” says a member of the KSE, adding “investors are now operating on long-term basis on the perception of an economic recovery.”

Minus signs again dominated the list under the lead of Babri Cotton, Pakistan Oilfields, Packages, Dreamworld, EFU Life and General, Shafiq Textiles and PSO, falling by Rs1.50 to Rs4.

Some of the leading shares did not toe the market’s general trend and posted gains ranging from Rs2.10 to Rs7 for Millat Tractors, Century Paper, Bannu Woollen, PICIC Bank, Gatron Industries, Pakistan Refinery, National Refinery and Nestle MilkPak.

Trading volume fell to 190 million shares from the previous 236 million shares as losers held a strong lead over the gainers at 123 to 76, with 53 holding on to the last levels.

PTCL was again actively traded, lower 60 paisa at Rs19.65 on 59m shares followed by Hub-Power, easy 75 paisa at Rs24.75 on 57m shares, PSO, sharply lower by Rs4 at Rs165 on 10m shares, ICI Pakistan, off 40 paisa at Rs54 on 7m shares and Japan Power, up 15 paisa at Rs4.15 also on 7m shares.

Other actives were led by ICI Pakistan, lower 40 paisa on 7.333m shares, Engro Chemical, up 65 paisa on 6.805m shares, FFC-Jordan Fertiliser, lower 10 paisa on 6.433m shares, National Bank, off 45 paisa on 5m shares and Pakistan PTA, easy 25 paisa on 4m shares.

FUTURE CONTRACTS: Fresh heavy decline of Rs4 in PSO again featured the trading on this counter where other pivotals also attracted selling and lower. It was last quoted around Rs166 on 1.172m shares.