KARACHI, Aug 1: Stocks on Thursday failed to extend the overnight rally as investors took profits at the inflated levels and left the market to their respective safe havens without looking back on the narrow price movements.

The entire activity appears to be a jobbing affair as no one was inclined to have a bigger stake on any of the counters as is reflected by mostly fractional price changes and low individual turnovers.

The KSE 100-share index reacted to finish with a modest fall of 4.30 points at 1,783.30 as compared to 1,787.60 a day earlier as all the leading base shares showed fractional decline.

The interesting feature was that dividend-related buying in some of the pivotals including Fauji Fertilizer after a good second interim dividend at the rate of 30 per cent, 20 per cent interim by Engro Chemical and final of 55 per cent by Sitara Chemical and 40 per cent by Security Papers failed to generate fresh buying owing to late selling.

The market is performing in an atmosphere of uncertainty caused apparently by the fears about the general election to be held amid a terrible political polarization and fears of a big showdown. However, the chief reason behind the dullness continues to be slack demand, most dealers believe.

Floor brokers said there are reasons to believe that the protracted bearish spell and sluggishness appears to be beyond the market’s technical demands and mandate but cash-heavy institutional traders are watching the situation and appear to be in no mood to reverse the trend.

“Staying out of the arena for such a long period demonstrate that big ones are out to browbeat the immediate contenders of power”, says a leading stock analyst “but what about the small investors”.

Excepting war-like conditions, the market has never been so sluggish and cheerless as it has been since the beginning of the new fiscal and the extended bearish spell worries everyone.

“I fear the market has been terribly politicized by the moneyed people having strong links with the major political parties”, he fears “in similar conditions as the prevailing ones financial institutions do play their assigned role to support the market”.

But some others said the current reported tussle between the stock exchanges and their apex body on some procedural matters has driven investors out of the market or they prefer to keep to the sidelines awaiting favourable decision on the issues involved.

Much worried must be the brokerage house as low volumes signals a sharp decline in their daily margins as “low volume means low margins”, they said.

“The continued absence of the notorious big ones for weeks together speaks of planned move”, says a leading analyst “the apex body must find the reasons behind the captive market, a virtual hostage to the whims of few”.

It was perhaps in this background that the turnover figure again fell to a modest total of 32m shares as losers forced a strong lead over the gainers at 128 to 92, with 76 shares holding on to the last levels.

Dewan Salman, a polyester giant, led the list of actives on positive reports about earning followed by duty concessions on fibre imports, up 10 paisa at Rs13.70 on 7m shares, followed by PSO, off 55 paisa at Rs140.25 on 7m shares, Hub-Power, lower 15 paisa at Rs24.25 on 4m shares, Fauji Fertilizer, off 60 paisa at Rs49.45 on 2m shares and PTCL, lower five paisa at Rs17.70 on 1.530m shares.

Engro Chemical led the list of other actives, off 45 paisa on 1.283m shares, Sui Northern, easy five paisa on 0.809m shares, Southern Electric, steady five paisa on 0.789m shares, ICI Pakistan, off 60 paisa on 0.768m, and KESC, easy five paisa on 0.683m shares.

CLEARED LIST: Unlike the previous sessions, speculative issues on the forward counter also lacked normal trading interest and ended further lower under the lead of PSO. It was marked down by 55 paisa at Rs140.95 on 2.644m shares.