KARACHI, Aug 29: Heavy profit-selling in blue chips at the inflated levels at the fag-end of weekend session halted the market’s upward drive on Friday but leading bulls are not inclined to entertain bearish ideas at this stage.

The KSE 100-share index, which in the morning session broke the psychological barrier of 4,500 points but late massive selling in most of the pivotals pushed it down from its career-best level of 4,542.00.

It finally finished around 4,461.47 after having touched at one stage the day’s highest level as the dividend driven-rally manifested itself in a big way on selected counters. The net fall over the day was 23.37 points at 4,461.47.

The correction was long overdue and a section of bears made the weekend considerations an excuse and indulged in active selling in the afternoon session, although selling was well absorbed at the dips.

“I don’t think, bears have the courage to reverse the trend at this stage as strong support at the dips did not allow them to cash on the handsome margin of profits”, analysts said adding “the correction is overdue but not yet”.

The fact that bulls were not inclined to take a breather at the weekend session, which generally attract selling from retailers and weakholders signals that it is heading to set new records both in terms of the index level and the total market capitalization.

Although reports from the political front, notably divergent views on the LFO were ignored but the fact is that it could well prove a major market depressant if doors of a negotiated settlement are closed by any of the contenders, brokers said.

The current market run-up largely owes its strength to the upcoming board meetings of some leading companies, notably of Pakistan Oilfields, Hub-Power and some others including Adamjee Insurance and ICI Pakistan and rumours of higher dividend, market’s highly overbought condition could reverse the trend any time, they fear.

Dividend announcement on some of the ICP mutual funds ranging from 10 per cent to 40 per cent cash and 10 to 15 per cent bonus shares at the PICIC board meeting on Friday were in line with the market thinking and were well-received where the payouts were higher as compared to previous year.

Opinions are divided about the market’s journey beyond the index level of 4,500 but bulls are not inclined to entertain bearish ideas at this stage at least all the leading companies come out with their working results and privatization process gets the needed push as far as PSO, Habib Bank, and 3.5 per cent share of National Bank.

But some others fear the developing political scenario, notably opposing stands on the LFO and the possibility of failure of MMA-government talks on LFO may push the market into the reverse gear.

Plus signs dominated the list despite weekend selling as leading shares managed to finish with extended gains under the lead of Rafhan Maize, Glaxo-SKF, Shell Gas, IGI Insurance and Javed Omer, which posted gains ranging from Rs10 to Rs35.50.

Other prominent gainers were led by Tri-Pack Films, Nestle MilkPak, Clariant Pakistan, Shafiq Textiles, Atlas Battery and Jahangir Siddiqui & Co right shares, up by Rs4 to Rs20.45.

Losers were led by Wyeth Pakistan, off Rs45 followed by Al-Ghazi Tractors, Lakson Tobacco, Pakistan Resource Co, Shell Pakistan and PSO, which suffered fall ranging from Rs4 to Rs13.35.

Trading volume soared to 696m shares from the previous 598m shares as gainers maintained a modest lead over the losers at 179 to 164, with 45 shares holding on to the last levels.

Hub-Power topped the list of actives, off 45 paisa at Rs44.30 on 166m shares, followed by PTCL, easy by 55 paisa at Rs38.65 on 80m shares, FFC-Jordan Fertilizer, up by Rs1.40 at Rs19.20 on 69m shares, Chakwal Cement, firm by 55 paisa at Rs7 on 43m shares and Bosicor Pakistan, up by Rs1.25 at Rs33.60 0n 35m shares.

Other actives were led by Pakistan Oilfields, higher by Rs5.35 on 21m shares, PSO, off Rs13.35 on 19m shares, KESC, steady 15 paisa also on 19m shares and Sui Northern Gas, off 75 paisa on 18m shares.

FORWARD COUNTER: PSO also came in heavy battering on the forward counter and fell by Rs13 at Rs290 on 3m shares, barring FFC-Jordan Fertilizer, which rose by Rs1.41 at Rs19.19 on 6m shares, all other August settlements fell. August settlements were rung off the board and September contracts assumed the role of ruling settlements.