KARACHI, March 31: The KSE 100-share index on Thursday failed to sustain the recent gains and reacted by 315.23 points or 4 per cent on renewed profit-selling by leading market players despite settlement of delivery problems in the March contract.

Stocks failed to extend the overnight run-up as the same set of investors who put the market back on the rails during the last two sessions pulled out after taking profits at the inflated levels, analysts said.

The KSE 100-share index lost more than what it recovered during the last two sessions as the rescue operation ended halfway after the exit of key players, of course, after taking profits.

After early rising by 130 points, it finished the session with a sharp fall of 315.23 points at 7,770.33 as compared to 8,085.56 a day earlier. All the leading base shares, notably PTCL, OGDC and PSO again suffered sharp setback and evoked sympathetic selling on the other counters.

The market capital also suffered a massive loss of about Rs86bn at Rs2,144bn as all the heavy weight, notably PSO, OGDC, PTCL reacted with the same haste as they did rise.

In the backdrop of recent massive fall of 30 per cent, the market is still in search of viable level, one broker said adding “any index level between 6,000 and 7,000 could be the ideal meeting ground for both the bulls and the bears”.

“The consortium support meant to bail out some of their defaulting colleagues facing delivery problems in the March contract”, commenting on the market’s U-turn a leading analyst said “and once clearing business was done smoothly, there was no point to hold on to long positions and the consequent sell-off”.

News from the economic front may by positive in the backdrop of higher growth rate of seven per cent, the market essentially responds to its basic fundamentals both positive and negative.

The index is still overvalued and may remain under pressure in the coming sessions also until it finds its real and sustainable level, brokers said adding “no one appears to be in a mood to take long-term positions at the current levels thinking they are still overvalued.

“What is more disturbing is the exit of leading financial institutions, which were supposed to support the market until prices stabilize at a certain viable level”, analyst said.

It was but natural for the general investors to follow them without any bearish reason as they too were in no mood to take risks in market tossing between the bad and good news, he said.

He said the recent crash of the market has exposed the weaknesses in the current forward trading system and need major changes to ward of future crash like the present one, most analysts say.

Although losers dominated the list some of the leading shares managed to finish with good gains under the lead of Gillette Pakistan, Pakistan Gum Chemicals, Berger Paints, United Sugar, Suraj Cotton, New Jubilee Insurance, Central Insurance and Treet Corporation, which posted gains ranging from Rs4 to Rs25.

The list was strewn with sharp losses on all the counters, energy sector again being the target of sellers. Arif Habib Securities, Javed Omer, Lakson Tobacco, PPL, Pakistan Oilfields, Colgate Pakistan, AKD Securities, PSO, Shell Pakistan, and Wyeth Pakistan were leading among them, falling by Rs11.75 to Rs54. Some other leading shares also fell like ninepins.

Trading volume suffered a modest decline at 401m shares from the previous 447m shares as losers again forced a strong lead over the gainers at 292 to 90, with 29 shares holding on to the last levels.

PTCL led the list of actives, which fell with the same speed as did rise, off Rs3.65 at Rs70.25 on 90m shares, OGDC, off Rs5.85 at Rs111.55 on 40m shares, Pak PTA, lower Re1 at Rs13.40 on 34m shares, Fauji Fertilizer Bin Qasim, off Rs1.55 at Rs29.80 on 29m shares and PSO, sharply lower by Rs20 at Rs398 on 24m shares.

Other actives included D.G. Khan Cement, lower Rs2.15 on 23m shares, National Bank, off Rs6.10 on 19m shares, Fauji Cement, lower by Re1 on 12m shares, TRG Pakistan, off Re1 on 9m shares and Sui Southern Gas, easy five paisa also on 9m shares.

FORWARD COUNTER: Speculative issues on the forward counter also received fresh massive battering under the lead of PSO, off Rs21.45 on 18m shares, followed by PTCL, down Rs3.75 at Rs72 on 25m shares, Kapco, lower Rs1.10 at Rs50.40 on 11m shares, OGDC, off Rs6.05 at Rs115.35 also on 11m shares and PPL, lower Rs12.50 at Rs237.50 on 7m shares. Others also fell under the lead of other energy shares and some pivotals.

DEFAULTING COS: In sympathy the ready section, prices on this counter also fell though modestly on stray selling. Dandot Cement was leading among them, off 75 paisa at Rs10.75 on 0.145m shares followed by Lafaytte Industries, lower 30 paisa at Rs1.70 on 0.122m shares.