KARACHI, July 29: Stocks on Monday failed to make any headway as investors preferred to keep to the sidelines rather than making fresh commitments apparently awaiting the advent of financial support. The KSE index fell by five points at 1,778.24.

Unlike the previous sessions, the opening was a bit promising but as the follow-up support remained terribly shy, the early gains could not be sustained and the market finished with an extended fall.

Leading fertilizer shares are due to announce their accounts on Tuesday and Wednesday and analysts claim their earnings for the last year are on the higher side. Engro Chemical may be on the top despite the expiry of tax holiday.

They could generate a good bit of fresh buying in a dull market and may be able to break the vicious circle of the prevailing silence in stock trading.

The proposed dividend of 17 per cent by the directors of Sui Northern Gas is said to be in line with the market perceptions. However, it came at a time when other overriding factors are dominating the stock trading.

The KSE 100-share index continues to erode below its psychological barrier of 1,800 point in fractions, reflecting the weakness of its leading base shares including Hub-Power and PTCL. It ended further lower by 4.81 points at 1,778.24, heading to breach through the barrier of 1,770 points.

Some analysts attributed the terrible sluggishness to political uncertainty ahead of national elections and some others to the impending polarization and both may be right in their own ways.

The turnover figure of 33m shares, a half of the daily volume of an active share in a single-session, reflecting that the market may be in a deeper recession than many could imagine at this stage, one dealer fears.

Reports of higher interim earnings by some mega issues, notably PSO, PTCL, Hub-Power and some fertilizer shares should have generated a lot of pre-announcement speculative support but there were no signs of revival of normal activity on any of the counters.

“In good old days a visit of any big shot from the US would generate a lot of speculative buying, Colin Powell came and left after emphasizing the need for talk to settle the Kashmir issue,” one stock analyst said “this time investors did not react either-way.”

Everyone is awaiting each one to bell the cat, one broker said adding the needed lead is not coming from any quarter even from the institutional traders.

The market has witnessed lean periods previously too, the current lull has worried everyone beyond their enduring capacity, he said adding “the big question is when it will be broken and who will initiate the rally.”

Minus signs again dominated the list, major losers being Berger Paints, Sapphire Textiles, Tri-Pack Films, General Tyre, Shell Pakistan and Wyeth Pakistan, which suffered fall ranging from Rs.1.40 to 11.00.

Advancing shares were led by Dawood Hercules, Fauji Fertilizer, BOC Pakistan, Gul Ahmed Textiles, Abbott Lab, Lever Brothers and Mehmood Textiles, up by one rupee to Rs.11.

The volume figure remained light at 33m shares because of slack demand and gainers trailed far behind the losers at 88 to 154, with 60 shares holding on to the last levels.

Hub-Power led the list of actives, lower 15 paisa at Rs.24.15 on 11m shares followed by PSO, off 70 paisa at Rs.138.25 on 5m shares, PTCL, easy 10 paisa at Rs.17.60 on 4.315m shares, Sui Northern Gas, up 10 paisa at Rs.14.20 on 2m shares and Pak PTA (right), unchanged at 0.10 on 1.494m shares.

Other actives were led by KESC, easy five paisa on 1.274m shares, Chakwal Cement, lower 15 paisa on 0.825m shares, MCB, off 20 paisa on 0.752m shares, ICI Pakistan, lower 60 paisa on 0.710m shares and Engro Chemical, up five paisa on 0.544m shares.

CLEARED LIST: The activity on the forward counter was relatively slow where the volume figure fell to 0.903m shares from the previous 21m shares. The notable feature was that matured July settlements were run off the board and the August contracts resumed the role of ruling settlements.