KARACHI, July 24: Stocks on Wednesday lacked normal trading interest as leading investors again adhered to the sidelines awaiting fresh developments on the global markets and their likely impact on the local trading.

Although no tangible negative impact was visible on those counters that are linked to the MNCs facing financial problems, fears that it could spill over to their local subsidiaries sent a wave of pessimism on the stock trading.

There was an attempted rally at the start of the session but as the follow-up support was not in a mood to manifest itself in a bigger way the early run-up could not be sustained.

The KSE 100-share index showed a fresh fractional decline of 1.92 points at 1,792.95, indicating a status quo between the bulls and bears but below the 1,800 point level.

The falling volumes reflect that investors were more than cautious and refrained from making fresh commitments until news from the world corporate sector turn stimulating, brokers said.

However, it is satisfying to note that the market now has a relevance to international developments both negative and positive, reflecting a major change in the investor perceptions, they added.

“There is no scare but investors fear a spill over of the current turmoil on the global markets and are playing safe,” says a leading stock analyst.

As far as the local fundamentals are concerned they are positive and could support any rally initiated by the financial institutions or the speculative forces, he adds.

The bankruptcy of some US telecom giants, some of them having a big stake here worry local investors as their fallout could make a lot of difference for their counterparts here.

“The market is now terribly cheerless as the global crisis has taken steam out of it at least for the near-term as investors are not inclined to cover positions even at the current attractively lower levels,” says another stock analyst.

The local political scenario may also have some relevance to the prevailing uncertainty but the main factor appears to be the failure of the institutional traders to give the needed lead to the shaky investors, some others said.

Unlike the last couple of sessions, some of the leading shares managed to put on good gains under the lead of PICIC, A. Hassan Textiles, Nafees Cotton, Mehmood Textiles, Transpak Corporation and Dilon, which rose by Rs.1.50 to 2.20.

Others to follow them were led by Escort Bank, Al-Mal Securities, KASB & Co, Fazal Textiles and Pak Reinsurance, which rose by one rupee to Rs.10.

Prominent losers included Bhanero Textiles, PSO, Lever Brothers, Wyeth Pakistan, Treet Corporation and BOC Pakistan, selling after the announcement of second interim dividend at the rate of Rs.7.50 per share, off Rs.5.50. Others fell by Rs.1.50 to 3.30.

Trading volume fell further to 43.771m shares from the previous 61m shares as losers maintained a fair lead over the gainers at 140 to 105, with 83 holding on to the last levels.

Hub-Power, whose board is expected to meet some time next month (book closure from Sept 24 to Oct 8) led the market decline, easy 10 paisa at Rs.24.30 on 12m shares followed by PTCL, unchanged at Rs.17.85 on 9m shares, PSO, off Rs.1.50 at Rs.139.55 on 6m shares, Sui Northern, up 20 paisa at Rs.14.20 on 1.060m shares and ICI Pakistan, higher 10 paisa at Rs.39.15 on 0.8m shares.

Other actives were led by National Bank, up 15 paisa on 2.430m shares, Southern Electric, unchanged on 1.921m shares, Chakwal Cement, easy five paisa on 1.862m shares, and KESC, lower five paisa on 1.237m shares.

FUTURE CONTRACTS: Leading shares on the cleared list also followed the pattern of their counterpart in the ready section and fell sharply under the lead of PSO, off Rs.1.50 and 1.55 for both the maturing July and the distant August settlements at Rs.139.70 and 140.55 respectively.