KARACHI, March 19: Stocks on Wednesday remained under pressure as follow-up support turned shy in the absence of financial institutions and leading bargain-hunters. The KSE 100-share index fell by 20 points but stood above the benchmark of 2,500 points.

There was no trace of the overnight rally after trading resumed as weak-holders and jobbers hastened to get out of the market, fearing US attack on Iraq any time after the deadline of the ultimatum ends early Thursday morning.

Textile shares were an exception, which maintained their upward drive on expectations of higher foreign sales, while energy shares led to the market decline on active selling at the inflated levels.

Fears about the negative fallout of the Gulf war are now evident as leading investor played safe, while retailers tried to keep to the sidelines.

In a related development, the rupee significantly firmed up against the major foreign currencies in the absence of demand from any quarter but rather there were many sellers.

The KSE 100-share index, which recovered about 40 points on Tuesday, again shed 19.56 points at 2,506.22 as compared to 2,525.78 a day earlier as leading base shares again finished reacted.

The decline was, however, not that alarming as to cause major dents in the price structure amid hopes that the new resolution tabled by Russia, Germany and France in the UN Security Council may find out some other alternatives to disarm Iraq to avert war.

But how the US and its allies react to the fresh peace moves could well prove a turning point in the Gulf history as major powers are against the war.

“All eyes are now focussed on the crucial Thursday morning deadline,” one broker said, adding “the most worried among the stock traders are the weaker links, most of whom are getting out of the market well in time.

“Short-term dealers, jobbers and most of the participants of the carryover market are offloading their holdings to the big financial institutions at a discount in an apparent bid to stay away during the war,” he adds.

Most of the overvalued energy shares, which have shown smart rallies, came in for active selling and finished reacted and so did some blue chips on the other counters.

Selling, however, never assumed an alarming proportions as leading investors and institutional traders kept to the sideline rather than indulging in panic offloading.

Prominent gainers were led by Noon Sugar, Shafiq Textiles, Bhanero Textiles, Pak Reinsurance Co and Nestle MilkPak, up Rs3.35 to Rs14.60. They were followed by Century Insurance, Faisal Spinning, Sapphire Textiles, Sapphire Fibre, Al-Ghazi Tractors, Ghani Glass and HinoPak Motors, up Rs2 to Rs3.30.

Losers were led by Shell Pakistan, Wyeth Pakistan, Shell Gas, Pakistan Oilfields and Pakistan Refinery, off Rs5 to Rs6.80. Attock Refinery, PSO, HinoPak Motors, Indus Motors, Pak-Suzuki Motors owing to post-dividend selling followed and Dawood Hercules, off Rs2.30 to Rs4.95.

Their absence was also reflected in a substantial decline in the traded volume at 95m shares from the previous 130m shares. Losers maintained a fair lead over the gainers at 163 to 91, with 41 shares holding on to the last levels.

Hub-Power topped the list of most actives, lower 45 paisa at Rs35.40 24m shares followed by Sui Northern Gas, up 40 paisa at Rs22.80 on 16m shares, PTCL, lower 30 paisa at Rs21.45 on 10m shares, PSO, off Rs4.45 at Rs193.60 on 8m shares, Engro Chemical, up 70 paisa at Rs92 also on 8m shares and Pakistan Oilfield, off Rs5 at Rs168 on 3m shares.

Other actives were led by FFC-Jordan Fertiliser, easy 15 paisa on 6m shares, Dewan Motors, lower 30 paisa on 4m shares, Dewan Salman, up 15 paisa on 2m shares and Pak PTA, easy 10 paisa also on 2m shares.

FORWARD COUNTER: PSO came in for active selling at the overnight inflated level and finished reacted by Rs3.35 at Rs194 on 5m shares. Sui Northern Gas, on the other hand rose by 25 paisa at Rs22.70 on 3m shares and so did Engro Chemical at Rs80.30 on 2m shares. PTCL fell 20 paisa at Rs21.55 on 2m shares.