KARACHI, Sept 13: Stocks on Monday suffered fresh pruning across a broad front as investors were not inclined to make fresh covering purchases despite higher corporate announcements by some of the leading companies and preferred to keep to the sidelines.

Instances of strong selective support on a number of counters were, however, witnessed as a section of investors rolled their positions from high risk areas to safe havens under the lead of Pakistan Petroleum, which was again massively traded and at one stage soared to Rs117 before finish reacted.

The market's terribly bearish outlook is well-reflected in the persistent fall in the KSE 100-share index, which shed another 53.82 points at 5,118.43 as against last Friday's 5,172.21 after early moving either-way. Market capital further shrank by Rs17.651 billion at Rs1,377.327 billion as compared to Rs1,394.378 billion at the last weekend.

It is heading to breach through the psychological barrier of 5,100-point even by Tuesday but some analysts predict it could bounce back after touching the 5,000 bench-mark as market's growth potential is there backed by good corporate announcements by most of the companies for the year ended June 30, 2004 or interim dividend from those whose financial year close on Dec 31, 2004.

"Fighting in the tribal areas followed by army operation to flush out militants and killings on both side do work against the market sentiment", analysts said adding "allied fears of law and order situation elsewhere in the country are inhibiting fresh buying by any of the major participants including the financial institutions".

The other inhibiting factor is the hanging sword of massive float from the carryover market, where investors still hold investment totalling Rs25 billion amid falling carryover rates and share prices and could find its way into the system any day.

The investors are also worried over the government's silence over the Capital Value Tax (CVT) despite the fact that it has taken steam out of the market for the last three months, both in terms of index, and market capital, 500 points and Rs600 billion respectively.

It was perhaps in this background that a cash dividend of Rs12.50 and EPS at Rs18.98 by Pakistan Oilfields accelerated the market's down drift rather than pushing it up, off Rs3.70. Last year it had given a cash dividend of 175 per cent plus bonus shares of 60 per cent, which boosted its share value to new all-time peak levels.

Price changes were, however, fractional and reflected lack of support rather than large selling from any quarter. Arif Habib Securities and Cherat Cement were leading among the gainers, up by Rs5 and Rs3.70, followed by Imrooz Modaraba, Cherat Cement, Jahangir Siddiqui & Co, Allwin, Pakistan Cables, Pakistan Papersack and Associated Industries, which posted gains ranging from Rs2.80 to Rs3.70.

Losers were led by Aventis and Wyeth Pakistan, off Rs9.95 and Rs54. Other prominent losers included PICIC, Thal Jute, Attock Refinery, on post-dividend selling, Pakistan Refinery, Pakistan Engineering, Dawood Hercules and Cherat Paper, off Rs3.25 to Rs5.

Trading volume remained light at 111m shares as losers maintained a strong lead over the gainers at 195 to 87, with 35 shares holding on to the last levels. The active list was topped by D.G.Khan Cement, lower 85 paisa at Rs55.85 on 13m shares followed by Lucky Cement, easy 10 paisa at Rs35.75 on 10m shares, OGDC, off Re1 at Rs62.25 also on 10m shares, Bank of Punjab, lower 25 paisa at Rs63.90 on 9m shares, PIAC, up by 60 paisa at Rs12.65 also on 9m shares, National Bank, off Rs1.55 at Rs68 on 6m shares.

ICI Pakistan, off 75 paisa on 6m shares followed them, Fauji Fertilizer Bin Qasim, PTCL, and MCB, also fell modestly on 4m shares each.

FORWARD COUNTER: Pakistan Petroleum was again actively traded but finished lower by 90 paisa at Rs112.60 on 67m shares. At one stage, it rose to Rs117 followed by D.G.Khan Cement, off 95 paisa at Rs56 on 5m shares, National Bank, lower Rs1.65 at Rs68.15 on 3m shares, OGDC, easy 85 paisa at Rs62.55 on 3m shares and PTCL, lower 85 paisa at Rs39.25 also on 3m shares.