KARACHI, July 18: Stocks on Thursday turned in a subdued performance as follow-up support took a technical pause on stray selling in some of the pivotals but the underlying sentiment remained uppishly inclined.

Unlike the previous sessions, the price movements either-way were mostly fractional and reflected both the bears and the bulls are inclined to maintain a status quo, allowing the market to consolidate its previous gains.

Bulk of the profit-selling was confined to leading base shares, including PTCL, Hub-Power, ICI Pakistan and PSO, as a section of investors was out to push their price down and then to covering positions at the lower level for capital gains.

“There is nothing to suggest that the current run-up is overdone,” says a leading dealer, adding “the market has just taken a pause to build-up a strong rally at the current levels.”

The KSE 100-share index closed with a modest decline of 4.14 points at 1,786.62 after having failed to penetrate into the psychological barrier of 1,800 points. The highest for the day was briefly hit at 1,796.

“Investors did not cherish the idea of a snap reaction as the market has more than one reasons to scale fresh highs alone on technical grounds,” says a broker, adding “of course the reaction was overdue after the 1,800 index level.”

However, there is no reason to believe that the current run-up is overdone at least for the near-term as the board meetings of some of the mega companies due by the end of the current month could spring many a pleasant surprises.

The board meetings of Hub-Power, BOC Pakistan and some other leading shares are due by the last week of the current month, and if one can rely on the market talk their payouts could be on the higher side.

“The revival of foreign buying on selected counters accompanied by the strong new fiscal short-covering by the financial institutions are the two positive developments, which will not allow the market to fall below its technical demand,” most analysts predict.

The advent of foreign buying was long overdue but foreign fund managers delayed on their own perceptions rather than the objective conditions as in the intervening period prices of leading shares have appreciated significantly.

“The perception of low-risk and high return market seems to have lured them back but they may not repent their decision as most of them stand to gain in the final analysis,” they added.

Trading volume fell sharply to 71m shares from the previous 126m shares as losers held a strong lead over the gainers at 146 to 96, with 61 shares holding on to the last levels.

Hub-Power led the list of actives, lower 10 paisa at Rs23.90 on 19m shares followed by PTCL, easy 10 paisa at Rs17.75 on 14m shares, D.G. Khan Cement, up 25 paisa at Rs10.10 on 8m shares, PSO, off Rs1.10 at Rs136.95 on 6m shares, National Bank, lower 10 paisa at Rs21.20 on 4m shares, and MCB, whose management has raised the bid to buy controlling shares of the United Bank from the previous Rs8.5 billion to Rs12 billion after the Privatization Commission has asked it to raise its bid to match the bench.

Other actives were led by Sui Northern Gas, firm by 20 paisa on 3m shares, ICI Pakistan, off 55 paisa on 1.631m shares, Chakwal Cement, steady by 10 paisa on 1.536m shares and Telecard, lower 15 paisa on 1.390m shares.

FUTURE CONTRACTS: Speculative shares on the forward counter also followed their lead but most of the fall were fractional barring PSO, which fell by Rs1.40 at Rs137.15 on 2.617m shares.