KARACHI, May 21: Stocks on Tuesday finished further lower but the overnight corrective measures taken by the KSE high-ups to strengthen the market did work, limiting the losses, although some of the leading shares again broke circuit breakers under the lead of PSO.

The KSE 100-share index breached through the psychological barrier of 1,600 points at 1,598.16, off 49.09 points in an expanded volume of 172m shares.

“I think normalcy to stock trading will return even by tomorrow as speculative forces and rumours mongers are on their way out after having a field day by spreading the war scare,” stock analysts said.

Fears of intensified border clashes on the Line of Control are there but the talk of nuclear option appears a distant possibility, they added.

In the absence of foreign support all eyes are now focused on strong presence of the financial support, which in the similar conditions as the prevailing ones, plays role of a rescuer, some brokers said.

Unlike the overnight sell-off, however, this time the chief villain of the game was the badla market and massive carryover business rather then the border situation, brokers said, adding “everyone was inclined to get out of the market fearing a settlement crisis.”

According to the final closing, the computer showed a fall of about 49.09 points in the KSE 100-share index around 1,598.16, reflecting the weakness of leading base shares, including PTCL, Hub-Power and PSO.

The overnight corrective steps taken by the KSE high-ups to stem the wrought, including cut in circuit breaker limit to five per cent from the previous 7.5 per cent and ceiling of 24 per cent on the carrying over charges, did work but the badla transactions were not that smooth.

The trading resumed about two hours late due to slack activity on the badla market owing to ceiling of 24 per cent and that appears to be the chief cause behind the renewed early sell-off.

“Monday’s COT investment estimated around Rs3.36 billion were finally cleared, signalling the steps taken by the KSE authorities have judiciously worked.”

However, it is too early to predict whether or not that the worst is over as the tension on the borders is very much there and so are border skirmishes between Pakistani and Indian armies.

Stock analysts said the direction of the market was still unclear owing to developing situation on the borders, but in between much will depend on the behaviour of the institutional traders and some positive news from the border and the badla market.

Although minus signs again dominated the list, some leading shares managed to finish modestly higher under the lead of Exide Pakistan, PICIC, Glaxo-Wellcome Pakistan, Javed Omer and Lever Brothers, which recovered by one rupee to Rs17.

Top losers were Nestle MilkPak, PSO and Wyeth Pakistan, which fell by Rs5.50, 8.85 and Rs23.75, respectively, followed by Pakistan Oilfields and Dawood Hercules, off Rs3.90 and 4.50, respectively.

Trading volume rose to 172m shares from the previous 71m shares as losers maintained a strong lead over the gainers at 126 to 67, with 27 remaining unchanged from the previous levels.

The volume leaders, which are the victims of massive badla business, notably Hub-Power, PSO and PTCL remained under pressure as weak-holders were still in panic. Both in Hub-Power and PSO breached the circuit breaker limits followed by fresh hasty selling.

Hub-Power led the list of actives, off Rs1.05 at Rs20.75 on 73m shares followed by PTCL, easy one rupee at Rs14.85 on 45m shares, FFC-Jordan Fertilizer, up five paisa at Rs5.45 on 9m shares, PSO, sharply lower by Rs6.85 at Rs130.35 on 7m shares and Sui Northern, lower 15 paisa also on 7m shares.

KESC topped the list of other actives, up 15 paisa on 5m shares, Telecard, steady five paisa on 3m shares, Dewan Salman, lower 35 paisa also on 3m shares, Fauji Fertilizer, easy 15 paisa on 2.454m shares and Pak PTA, firm by five paisa on 2m shares.