KARACHI, Jan 29: Stocks on Wednesday finished with an extended fall under the lead of energy sector as leading investors played on both sides of the fence in the absence of strong support from the institutional traders. The KSE index shed another 30.20 points at 2,627.05.

For the first time during the last four weeks, the market showed signs of relative sluggishness apparently signalling the end of speculative buying euphoria amid fears of Iraq war and bad news from across the border.

Maintained cash dividend plus bonus shares by Engro Chemical seems to have fallen below the market expectations and did not generate fresh buying on the fertilizer sector but rather evoked selling by jobbers and short-term dealers. Fauji Fertilizer also received heavy battering, off Rs3.35.

The KSE 100-share index shed another 30.20 points at 2,627.05 as compared to 2,657.25 a day earlier as the turnover figure shrank to a modest level of 214m shares. The fresh fall was significant as it was caused despite higher closing of the leading base shares, PTCL and Hub-Power and reflected the weakness of broader market.

Predictions that dividend from Engro Chemical and Fauji Fertilizer, the two urea giants will trigger strong speculative buying seem to be losing their relevance after the announcement of the former. Its management has declared cash dividend of 35 per cent plus bonus shares at the rate of 10 per cent (interim of 40 per cent already paid), but failed to generate fresh buying in its share.

Rather it fell by Rs1.70 at Rs91.30 on a large volume of 15m shares. During the pre-dividend sessions, it had crossed the 100-rupee mark at Rs108 for more than once.

Final dividend announcement from the Fauji Fertilizer is due during the next couple of sessions and if it too falls short of the investor expectations, there could be a protracted bearish spell supplemented by bad news from the Iraq front. Higher interim dividend of 95 per cent by Shell Pakistan also failed to boost market sentiment.

“All hopes are now pinned on the sell-off of PSO and the dividend from Hub-Power, both are capable of keeping the market in good health and investor morale high in the coming weeks,” analysts said.

Bulls may not be tired by now after having pushed the market to its new career-best level of 2,955 points during the first fortnight of the month. Fears of US attack on Iraq and regional tension seemed to have curbed their buying enthusiasm at least for the near-term, they added.

Plus signs, therefore, again trailed far behind the minus ones at 82 to 221, with 42 shares holding on to the last levels, prominent losers being Ferozsons Lab, National Refinery, Arif Habib Securities, PSO and Shell Pakistan, off by Rs3.55 to Rs8.05.

Other major losers included 4th ICP, Adamjee Insurance, Lakson Tobacco, Attock Refinery, National Refinery, Indus Motors, Ferozsons Lab and Honda Atlas Cars, off Rs2 to Rs3.55.

Some of the second-liners managed to put on modest gains, leading among them being Noor Silk, ICI Pakistan, Sitara Energy, Exide Pakistan and Cherat Papersack, up one rupee to Rs2.35.

Trading volume fell to 214m shares from the overnight’s 349m shares despite stray short-covering in Hub-Power, up 10 paisa at Rs36.30 on 64m shares followed by PTCL, firm also by 10 paisa at Rs23.80 on 33m shares, PSO, sharply down by Rs7 at Rs194.65 on 21m shares and FFC-Jordan Fertilizer, easy by 25 paisa at Rs12.20 on 17m shares.

Other actives were led by ICI Pakistan, up Rs1.45 on 10m shares, Sui Northern Gas, easy 20 paisa on 8m shares, Pak PTA, lower 15 paisa on 5m shares, Pakistan Oilfields, steady by five paisa also on 5m shares and KESC, lower 15 paisa on 4.506m shares.

FORWARD COUNTER: PSO again came in for heavy selling as its both settlements suffered fall ranging from Rs5.51 to Rs7.21, the largest being in the maturing January contract at Rs195 on 6m shares. Hub-Power and PTCL on the other hand rose modestly at Rs36.25 and Rs23.85 on 16 and 4m shares.