KARACHI, Aug 19: Stocks on Thursday failed to extend the overnight run-up as heavy float from the carryover market overshadowed the election victory of Shaukat Aziz. The KSE 100-share index shed 40 points, reflecting the weakness of leading base shares.

However, there were buyers at each dip as investors were not inclined to take a bearish view of the snap reaction. An air of optimism prevailed in the rings on the perception that good days are ahead for the stock investors after the new prime minister takes over.

But a leading stock analyst claims that sole reason behind the market's reversal was the statement of SECP about any change in the Capital Value Tax (CVT) as was speculated by a section of investors after Shaukat Aziz takes over as prime minister during the next couple of days.

The opening was, however, on the higher side on early support in some of the pivotals but mid-session reports of heavy selling from the carryover market on reports of higher rates reversed the trend.

The KSE 100-share index after initial rise to 5,435.00, up 17 points fell to finish the day with a net fall of 39.68 points at 5,377.76 as compared to 5,417.44 a day earlier as leading base shares tended lower.

Analysts' predictions of a robust rally to greet the election victory of Shaukat Aziz, failed to enthuse investors as leading among them were worried over the heavy carryover float and its likely impact on stock trading during the next couple of sessions rather than welcoming the new prime minister.

However, it appears to be a technical correction and the market sure to welcome the new prime minister as he is more investment-friendly than any other person, they said.

"The long-term share business outlook should be bullish sans the late negative fall-out of the Capital Value Tax (CVT)", they said "he is capable of taking bold financial steps to boost stock trading and attracting foreign buying after he settles down".

The selling was across-the-board and covered all the sectors, although overvalued shares, which ensured higher capital gains attracted bulk of the selling, notably from the retailers.

Meanwhile, investors were awaiting for financial results from Shell Pakistan, Unilever Pakistan and Dawood Hercules which were due on Thursday but were delayed and now expected to be released on Friday.

Leading gainers were led by Colgate Pakistan, International Industries, IGI Insurance, Aventis and Shell Pakistan, which posted gains ranging from Rs6 to Rs12. They were followed by Pakistan Cables, Pakistan Engineering, Unilever Pakistan, Thal and Exide Pakistan, up by Rs3 to Rs4.80.

Losers were led by Haroon Oils, Tri-Pack Films, Gatron Industries, Sapphire Fibre, and Siemens Pakistan, off Rs3 to Rs5. Leading losers included HinoPak Motors, Arif Habib Securities, Al-Ghazi Tractors and Javed Omer, which suffered fall ranging from Rs6.20 to Rs8.50.

Trading volume fell to 240m shares from the previous 274m shares as losers forced a strong lead over the gainers at 197 to 121, with 47 shares holding on to the last levels.

OGDC led the list of actives, off 80 paisa at Rs66.25 on 33m shares, National Bank, easy 25 paisa at Rs73.20 on 28m shares, Fauji Fertilizer Bin Qasim, lower 35 paisa at Rs22.10 on 18m shares, Adajmee Insurance, higher by Rs2.85 at Rs68.10 on 15m shares and Askari Bank, off Rs1.45 at Rs79.45 on 14m shares.

Other actives were led by Bank of Punjab, lower 15 paisa on 14m shares, Union Bank, up by Rs1.70 on 13m shares, MCB, lower 60 paisa on 9m shares, D.G.Khan Cement, off Rs1.30 also on 9m shares and Maple Leaf Cement, lower 90 paisa on 7m shares.

FORWARD COUNTER: Speculative issues on the cleared list also fell by Rs1.60 to Rs2 under the lead of PSO, Pakistan Petroleum and Pakistan Oilfields. Pakistan Petroleum was traded lower for 18m shares at Rs108 followed by OGDC, off 85 paisa at Rs66.30 on 7m shares, National Bank, easy five paisa at Rs73.45 on 3m shares, Maple Leaf Cement, off 85 paisa at Rs37.85 also on 3m shares and F.F.Bin Qasim, easy 30 paisa at Rs22.20 on 2m shares.