KARACHI, Jan 20: The KSE 100-share index on Tuesday failed to sustain the initial run-up boosted by reports of higher corporate earnings by the fertiliser and energy sectors but ended modestly lower on late-selling.

After months of continued recession, it resumed trading on an improved note and steadily rose to touch the session’s high of 5,393.47 points, but subsequent selling in some of the pivotals pushed it again down to close with a modest fall of 22.47 points at 5,258.28.

The KSE 30-share index finished reacted from the session’s high at 4,935.01, off 19.01 points.

The early rally was attributed to a higher final cash dividend of 22.5 per cent by Fauji Fertiliser Bin Qasim, which together with an interim of six per cent already paid pushed the total to 28.5 per cent and per share earning to Rs3.10 from the previous Rs2.72.

Board meeting of Fauji Fertiliser on Thursday and briefing by the Engro Chemical officials to the stock exchange members and brokers, banker and security analysts on Jan 23 on the earnings for the last year was another aiding factor, said a leading floor broker.

Unlike the previous sessions, the broader market performed well on the strength of fertiliser sector followed by reports of higher earnings by Fauji Fertiliser and Fauji Fertiliser Bin Qasim, PTCL and Hub-Power.

But the weakness of some leading base shares, notably National Bank, OGDC and others weighed heavily against the underlying sentiment and cut short the initial rally.

“Owing to higher badla rates, the liquidity crunch continued taking its toll, but indications are that the recovery initiated by the higher corporate results is expected to provide exit facility to many,” analysts said.

Much water has already flown under the bridge for the last several months of massive fall and there is a need of joint operations by all to restore its past glory index level at 15,622 points and single-session volume of 1.22 billion shares, they added.

However, the flutters here and there may be around but may not give the needed morale booster to the general investors, they added.

For the first time after several weeks, plus signs dominated the list Engro Chemicals, Ismail Industries, ICI Pakistan, Packages, Pak Datacom, Millat Tractors, Attock Petroleum and Pakistan Petroleum, which recovered a good part of previous losses, up by Rs2.35 to Rs8.42. There were several good gainers also.

Top losers were led by Wyeth Pakistan, Rafhan Maize, Nestle Pakistan, which fell by Rs123.50, Rs92.13 and Rs60.17 followed by Shell Pakistan, Sapphire Fibres, EFU Life, Pakistan Services, Ferozsons Lab and Siemens Pakistan, off by Rs10.07 to Rs32.

Other losers included MCB Bank, PSO, PECO, Dawood Hercules, Clariant Pakistan and Sitara Chemical, off by Rs5.02 to Rs7.77.

Trading volume rose sharply higher to 143m shares from the previous 76m shares as gainers held a modest lead over the losers at 130 to 114, with 12 shares holding onto the last levels.

OGDC topped the list of actives, lower by 47 paisa at Rs46.46 on 16m shares followed by Hub-Power, steady by 19 paisa at Rs15.18 on 11m shares, PTCL, up 53 paisa at Rs13.54 also on 11m shares, WorldCall Telecom, unchanged at Rs3.51 on 10m shares, Fauji Fertiliser, up by 47 paisa at Rs74.54 on 8m shares and NIB Bank, firm by 35 paisa at Rs4.76 on 7m shares.

National Bank followed them, sharply lower by Rs2.87 at Rs54.67 on 5m shares, followed by PIAC, easy by 53 paisa at Rs2.40 also on 5m shares, Mybank, up 67 paisa at Rs4.09 on 4m shares and D.G. Khan Cement, higher by 34 paisa at Rs15.99 on 3m shares.

FORWARD COUNTER: Owing to problems on the settlements of leveraged positions of some of the brokers, selling continued and leading shares fell further by Rs2.99 to Rs5.27 for Adamjee Insurance, Habib Bank, MCB Bank and PSO. Others fell modestly.

DEFAULTER COMPANIES: The activity on this counter slowed down as investors opted for the ready section where leading shares came in for active short-covering and put the broader market back on the rails under the lead of oil and fertiliser sectors.

However, Zeal Pak Cement came in for fresh support at the overnight levels and accounted for 2.831m shares at Rs0.48, Japan Power followed it, higher by 12 paisa at Rs1.60 on 0.677m shares and Unity Modaraba, easy by one paisa at Rs0.26 on 34,500 shares.

Others were traded fractionally mostly on the higher side under the lead of Globe Textiles, which rose by 92 paisa at Rs7.20 on 1,000 shares.