KARACHI, July 13: Stocks on Tuesday failed to extend the overnight run-up as follow-up support turned shy and leading base shares finished modestly lower on stray selling at the inflated levels. The KSE 100-share index reacted by 12.52 points at 5,473.22.

"I don't think the current run-up is overdone", predicts an analyst "the market is still to witness its highest level in the coming weeks on the strength of positive news both on the corporate and political fronts".

Essentially, it was a technical pause as investors liquidated long positions on selected counters to square outstanding dues but there was nothing wrong with the underlying sentiment, which remained uppishly inclined.

The KSE 100-share index, which had risen by about 200 points during the last two weeks could not confidently broke the barrier of 5,500 as it did on Monday and ended with a modest correction, off 12.52 points at 5,473.22 as compared to 5,485.74 a day earlier.

Profit-selling in some of the leading base shares, notably PTCL and OGDC pushed it in the minus column but there was nothing to suggest that bears could have an upper hand in a market awaiting higher dividend.

Technically speaking on Tuesdays, the market generally takes a breather as big ones adjust positions in the backdrop of positive and negative news from the corporate front.

Auto shares, which virtually raced towards their pre-budget inflated levels on Monday buoyed by new duty structure on the import of new and old cars, minimum being $4,000 on 800cc cars also took a breather.

Monday's price flare-up in auto shares caused by reports that the imported stuff may not be that cheaper as being considered earlier and the local assemblers will have an edge on them could not be sustained owing to selling at the higher levels, brokers said.

Having a near-protected market, local assemblers are happy on the fresh official move to protect the interest of the local auto industry. Auto shares are expected to rise further during the coming weeks partly because of the strength of their corporate earnings, some others predicted.

"It was a great fight between the import lobby and the local assemblers and after a lot of post-budget manoeuvring, the latter finally won, although general consumer may remain at the receiving end", analysts said.

But contrary to speculation, price flare-up slightly slowed down amid conflicting reports about the levies as some reports suggested it meant for the overseas Pakistanis not the local importers. While HinoPak and Al-Ghazi Tractors rose, Pak-Suzuki and some other fell.

Although minus signs dominated the list some of the leading shares managed to put on fresh gains on strong selective support, prominent among them being Pakistan Refinery, Dawood Hercules and Shell Pakistan, which posted gains ranging from Rs9.50 to Rs18.

Other good gainers were led by Askari Bank, Atlas Battery, Ghani Glass, HinoPak Motors, Al-Ghazi Tractors, Pakistan Hotels and Sitara Chemical, up by Rs2.75 to Rs6.

Losers were led by Clariant Pakistan, Javed Omer, Siemens Pakistan and Fateh Textiles, off Rs7 to Rs19.80 followed by EFU Life, Abbott after the announcement of an interim dividend of 25 per cent, PSO, International Industries and Arif Habib Securities, off Rs3 to Rs5.75.

Trading volume fell to 300m shares from the previous 398m shares as losers forced a strong lead over the gainers at 220 to 85, with 43 shares holding on to the last levels.

Bank of Punjab again topped the list of most actives, up by Rs1.50 at Rs65.70 on 42m shares followed by D.G. Khan Cement, easy five paisa at Rs60.10 on 28m shares, Nishat Mills, steady 25 paisa at Rs54.25 on 20m shares, OGDC, lower 25 paisa at Rs67.15 on 19m shares, ICI Pakistan, up by 90 paisa at Rs97.85 on 17m shares and ICP SEMF, lower 70 paisa at Rs51.70 on 12m shares.

Other actives were led by National Bank, firm by 15 paisa on 18m shares, Sui Southern Gas, steady by 10 paisa on 14m shares, Askari Bank, higher by Rs2.75 on 11m shares and PTCL, lower 30 paisa on 10m shares.

FORWARD COUNTER: After having passed through technical correction, Pakistan Petroleum came in for active support and rose by Rs3.25 at Rs110.05 on 23m shares followed by PTCL, off 35 paisa at Rs43.70 on 3m shares, PSO, sharply lower by Rs3.20 at Rs268.80 also on 3m shares, OGDC, lower by 25 paisa at Rs67.20 on 3m shares and D.G. Khan Cement, easy 15 paisa at Rs60.30 on 2m shares.