KARACHI, May 6: Stocks on Monday failed to extend the post-referendum rally as a section of investors sold in part their long holdings to keep their statistical position in order to avert undue losses.

“I don’t think the market’s run-up is overdone, its technical demands notwithstanding, it has reasons to behave orderly despite fears of law and order situation in the backdrop of fresh sectarian killing,” hopes a leading member of the KSE.

It appears to be in the process of digesting the post-referendum gains and could work its way upward after having passed through a technical correction, he adds.

After opening 10 points higher against the weekend close around 1,913.00, the KSE 100-share index finally ended reacted by 20.58 points at 1,883.58 as leading base shares fell fractionally under the lead of Hub-Power and PSO. The total market capitalization suffered a decline of Rs.4.334bn at Rs.435.080bn from the previous Rs.439.414bn.

“The market was in an overbought position owing to post-referendum speculative buying,” stock analysts at Al-Mal Securities said adding “both the leading brokers and financial institutions took profit at the higher levels in most of the pivotals.”

The selling, though was widespread, did not assume an alarming proportions partly because of the presence of stray support at the dips and partly to strong covering purchases made by the leading bargain-hunters.

The selling in part was also attributed to fresh reports of sectarian killing in the city over the last couple of days including Monday’s murder of college principal.

The changing political scenario owing to divergent views over the result of presidential referendum was also cited a destabilising factor as a section of investors fear law and order situation, some brokers say.

Weakness of the energy and textile sectors overshadowed the above market expectations performance of the blue chips on the chemical and some other counters.

Most of the price changes were fractional and reflected that investors were not worried about the reaction followed by predictions that the future outlook appears to be quite bullish.

“The index could fall further by another 20 to 30 points as it has demonstrated during the last two months that it is not inclined to stay above the 1,900 point index level,” stock analysts at Moosani Securities said. “It reacts within days from this risky level as bears don’t want it to stay above it.”

Fateh Textiles, Wyeth Pakistan and Parke-Davis, which rose by Rs.10.25 to 24.35 were leading among the gainers followed by Javed Omer, Artistic Denim, Al-Abid Silk, Pakistan Gum Chemical, Security Papers, Clover Pakistan, Glaxo-Wellcome Pakistan and Treet Corporation, up by Rs.2 to 4.90.

Big gains in the three top shares were attributed to the shortage of floating stock rather than any positive news on the dividend front.

Losers were led by Siemens Pakistan and Lever Brothers Pakistan, off Rs.5 to 8, the other notable losers being Adamjee Insurance, Attock Refinery, National Refinery, Abbott Lab, IGI Insurance and Dawood Hercules, lower by Rs.1.85 to 3.95.

Trading volume was light around 118m shares as losers held a strong lead over the gainers at 164 to 123, with 38 shares holding on to the last levels.

Hub-Power led the list of most actives, easy 10 paisa at Rs.25.45 on 42m shares followed by PTCL, firm by five paisa at Rs.19.15 on 16m shares, KESC, off Rs.1.30 on 8m shares, PSO, easy 10 paisa at Rs.163 also on 8m shares and FFC-Jordan Fertilizer, lower 40 paisa at Rs.7.10 on 7m shares.

National Bank led the list of other actives, off 70 paisa on 7m shares, ICI Pakistan, easy 15 paisa on 4m shares, Sui Northern, lower 20 paisa also on 4m shares, Adamjee Insurance, off 30 paisa on 3m shares and Bank of Punjab, easy 15 paisa on 2m shares.

FUTURE CONTRACTS: Forward counter also followed the lead of the ready section as prices fell in unison though fractionally. Hub-Power was off 10 paisa at Rs.25.60 on 6m shares.