KARACHI, Feb 10: Stocks on Monday fell across a broad front as pre-Eid holiday selling dominated the trading in the absence of strong buying at the falling prices from any of the quarters. The KSE 100-share index was off 63.39 points at 2,418.05.

Apart from a long weekend ahead, as the market will close for Eid holidays from Tuesday and will reopen on next Monday, the selling was also prompted by mounting political risks including the regional tensions. Energy shares being the leading losers on active profit-selling at the inflated levels and so did some of the MNCs including Unilever Pakistan, Siemens Pakistan.

Whether the KSE 100-share index will breach through its next barrier of 2,400 points during post-Eid trading sessions is being debated by the leading analysts. Most agree political risks involving the US attack on Iraq will not allow any tangible change in the prevailing market outlook.

After moving either-way, it suffered a sharp setback at 2,418.05 points as compared to weekend 2,481.44, off 63.39 points or 3 per cent. Turnover figure fell to four-month low of 82m shares as both leading investors and financial institutions stayed away owing to a long weekend ahead because of Eid holidays.

Total market capitalization also fell by Rs12.546bn at Rs536.959bn owing to steep decline in the heavily-capitalized shares including PTCL, Hub-Power and PSO.

The mounting regional tension after the expulsion of diplomats by India and Pakistan and fears of an imminent US allied attack on Iraq kept investors away of the falling market, analysts said. “Even attractively lower levels, which the blue chips have reached, failed to lure them back in the market.”

“Traditionally, political risks carry more weight on any liquidity-driven rally as essentially most of the players are not genuine equity investors,” says a leading stock analyst commenting on the persistent market reversal. “US attack on Iraq now appears to be a sure possibility.”

But investors may not be that scared from the regional tension even in the backdrop of deteriorating relations between the two close neighbours as fears of war are remote, he adds.

Long weekend ahead also prompted selling from jobbers, weakholders who squared their positions amid fears that anything could happen during the intervening holidays.

Interim dividend announcements from some of the leading companies were on the higher side of the market expectations, reflecting recovery in the corporate earnings but failed to push prices higher owing to other negative factors.

Leading losers were led by most of the overvalued shares, notably Pakistan Oilfields, Siemen’s Pakistan, Shell Pakistan, Parke-Davis and Unilever Pakistan, which suffered fall ranging from Rs7.10 to Rs28.90.

Other prominent losers included Adamjee Insurance, Attock Refinery, National and Pakistan Refinery, PSO, Dawood Hercules, Cherat Papers and Rafhan Maize, off Rs2.05 to Rs5.75.

Some of the leading shares managed to put on modest gains under the lead of Honda Atlas, Pakistan Re-Insurance Co, Treet Corporation, Arif Habib Securities, Abbott Lab, BOC Pakistan, Gillette Pakistan, Tri-Pack Films and Nestle MilkPak, up Rs2.05 to Rs16.40, the largest gain being in Nestle MilkPak.

Traded volume fell below the benchmark level of 100m shares at 82.133m shares from 155m shares at the last weekend as losers maintained a fair lead over the gainers at 176 to 51, with 35 shares holding on to the last levels.

Hub-Power led the actives, off 80 paisa at Rs33.90 on 23m shares, PTCL, sharply lower by Rs1.05 at Rs20.70 on 11m shares, FFC-Jordan Fertilizer, lower 55 paisa at Rs10.75 on 8m shares, PSO, off Rs5.35 at Rs178.25 also on 8m shares and Sui Northern Gas, lower 95 paisa at Rs20.75 on 5m shares.

Other actives were led by MCB, off Rs1.65 on 4m shares, Pak PTA, easy 20 paisa on 3m shares, Engro Chemical, off Rs1.60 on 2m shares, Pakistan Oilfields lower Rs7.10 on 1.578m shares and KESC, lower five paisa on 1.541m shares.

FORWARD COUNTER: Hub-Power came in for fresh selling and fell by 75 paisa at Rs34.15 on 10m shares, followed by PSO, sharply lower by Rs5.60 at Rs179.10 on 5m shares and PTCL, easy by Rs1.05 at Rs20.80 on 3m shares.