KARACHI, Jan 22: Stocks failed to react positively on Thursday to reports of higher corporate earnings and rumours of enhanced dividends by some of the leading companies as major investors remained conspicuous by their absence and bears again held the fort.

After having breached through the barrier of 5,000 points at one stage, which analyst said was the four-year low at 4,953.21, the KSE 100-share index managed to finish well above the session’s low on late fund covering purchases and stray buying on select counters.

The close however was at 5,020.71 points, off 115.77 points or 2.25 per cent, eroding another Rs35 billion from the market capital at Rs1,605 billion. Its junior partner the KSE 30-share index also fell by 2.45 per cent or 117.38 points at 4,665.59.

Apart from settlement of leveraged positions on the CFS market, some new depressants have overtaken the market signalling that the share business outlook will continue bearish.

“What seems to have taken steam out of the market is the news that banks have started selling pledged shares of the brokerage houses against their credit lines as some of them have failed to adjust their loans,” said a leading analyst.

He said the news was disturbing for the whole community of investors many of whom may not get back their original capital adding to prevailing uncertainty to the share market.

Higher corporate earnings by Fauji Fertiliser Bin Qasim, Fauji Fertiliser and Engro Chemical did provide a breathing space for a falling market.

Negative news were pouring in each session further intensifying the selling from the foreign investors and sympathetic unloading by the locals, thus price fall continues, said a leading floor brokers.

Minus signs again dominated the list but unlike the previous sessions, fall was modest. Leading losers were led by MCB Bank, National Refinery, Pakistan Oilfields, Al-Ghazi Tractors, Indus Motors, Engro Chemical, Sitara Chemical, Attock Petroleum, Shell Pakistan, Pakistan Services and Dawood Hercules after the postponement of its board meeting, suffered fall ranging from Rs4.29 to Rs11.63.

Gainers took a major share of the advancing issues and rose under the lead of Unilever Pakistan and Siemens Pakistan, up by Rs32.15 and Rs39.90 followed by Atlas Insurance, JWD Sugar, Lucky Cement, Pakistan Petroleum, BOC Pakistan, Clariant Pakistan, National Foods, PSO and PECO, which recovered Rs1.22 to Rs5.10.

Trading volume was maintained at the overnight level of 92m shares but losers held a strong lead over the gainers at 169 to 59, with nine shares holding onto the last levels.

The active list was again topped by OGDC, off Rs1.63 at Rs42.66 on 13m shares followed by Fauji Fertiliser Bin Qasim, steady by 26 paisa at Rs14.74 on 12m shares, National Bank, off Rs2.59 at Rs49.35 on 5m shares, PSO, higher by Rs4.47 at Rs100.65 on 4m shares, WorldCall Telecom, lower 16 paisa at Rs3.16 also on 4m shares, TRG Pakistan, easy by 14 paisa at Rs2.07 on 3m shares and PTCL, lower 21 paisa at Rs12.75 also on 3m shares.

Hub-Power followed them, up by 12 paisa at Rs14.89 on 3m shares, Pakistan Petroleum, higher by Rs1.49 at Rs139.96 also on 3m shares and Bank Alfalah, easy by 53 paisa at Rs11.52 also on 3m shares.

FORWARD COUNTER: There was no letup in the selling pressure on this counter as leading shares notably Adamjee Insurance, MCB Bank, Pakistan Oilfields and some others posted fresh sharp falls of Rs2.45 to Rs4.68, without any deal.

DEFAULTER COMPANIES: Zeal Pak Cement again led the list of actives, easy one paisa at Rs0.46 on 1.183m shares, followed by Unity Modaraba, lower seven paisa at Rs0.23 on 0.167m shares, Japan Power, easy by two paisa at Rs1.38 on 0.113m shares and Invest Bank, up 10 paisa at Rs1.90 on 0.109m shares.

Haydery Constructions, Pangrio Sugar and National Asset Leasing also came in for two-way active trading and finished mixed.