KARACHI, May 30: The weekend profit-selling ran through a robust early index run-up on Friday as investors were not inclined to hold long positions owing to both budget and political uncertainties, but analysts predict that the next week could witness return of bulls.

After having risen early by 176 points, the Karachi Stock Exchange (KSE) 100-share index reacted to close with a fall of 104.54 points at 12,130.51 on late selling. The free float 30-share index was off by 221.94 points at 14,097.98.

Despite official denial, rumours about President Pervez Musharraf’s resignation again dominated trading on the market as all eyes remained centered on news from Islamabad in the backdrop of conflicting press comments.

But some leading analysts said investors appear to be now more worried over the widely rumoured taxes in the new budget due on June 7, to put the economy back on the rails, rather than the rapidly changing political scenario.

The KSE bourse delegation, which met the finance minister on Thursday, said they want investment-friendly budget, political sanity, extension or no exemption in the capital gains tax, they said.

The opening was on the higher side, what the dealers called, the extension of yesterday’s late rally but as investors remained in two minds about the rumours of top political changes, they could not fully exploit the current market lows.

The KSE 100-share index should have showed better performance at the current lows but for weekend considerations, it failed to sustain a good part of the initial gains.

“Indications are that the worst may now be over after a massive fresh fall of well over 1,000 points and lower levels could attract a lot of covering purchases after sanity returns on the political front,” some others said.

They said the next week could witness an end of a lot of irritants as only fools could miss to ride the bandwagon expected to make its showing after three to four week’s persistent decline, which finally surpassed all previous market crashes.AKD Capital and Siemens Pakistan were among top gainers, up by Rs32.03 and 51, followed by Unilever Pakistan, Pakistan Tobacco, Murree Brewery, ICI Pakistan, Sapphire Textiles, EFU Life, Ghani Glass, Fazal Textiles, Tri-Pak films, Atlas Honda, Dawood Hercules, which rose by Rs5 to Rs117.

PSO and Nestle Pakistan led the list of losers and fell by Rs20.05 and Rs67.49, respectively. JS Global, JS & Co, MCB Bank, Adamjee Insurance, EFU General, Shell Pakistan, Pakistan Refinery, Mari Gas, Pakistan Oilfields and Indus Motors followed them, off by Rs8.35 to Rs14.45.

Trading volume rose to 226m shares owing to strong early short-covering as compared to previous 192m shares as gainers maintained a modest edge over losers at 166 to 132, with 20 shares holding on to the last levels. NIB Bank led the list of actives, steady by 20 paisa at Rs12.30 on 17m shares followed by PTCL, off Rs1.26 at Rs39.81 on 13m shares, Bank of Punjab, lower by Rs1.51 at Rs37.40 also on 13m shares, National Bank, up by Rs4.69 at Rs157.90 on 10m shares, Arif Habib Securities, firm by 30 paisa at Rs153.10 also on 10m shares, Bank Alfalah, higher by Rs2.15 at Rs45 on 7m shares, OGDC, off Rs2.30 at Rs123.70 also on 7m shares and Engro Chemical, off Rs3.28 at Rs279.01 on 7m shares.

Other actives included D G Khan Cement, higher by Rs3.36 at Rs72.60 on 10m shares, and Lucky Cement, higher by Rs4.95 at Rs108.45 on 7m shares.

FORWARD COUNTER: MCB Bank came in for fresh selling and after early rising to Rs296, fell to close with a sharp fall of Rs14.36 at Rs273 on 6m shares, followed by PTCL, lower by Rs1.55 at Rs40.05 also on 6m shares and Bank of Punjab, easy Rs1.52 at Rs37.10 on 5m shares.

National Bank followed them, easy by 84 paisa at Rs156.20 on 5m shares and NIB Bank, lower 11 paisa at Rs12.39 on 4m shares.

DEFAULTER COs: Zeal Pak Cement came in for active selling and led the list of actives on this counter, fractionally down by three paisa at Rs2.74 on 1.578m shares followed by Norrie Textiles, steady by four paisa at Rs2.12 on 1.436m shares and Japan Power, easy by 24 paisa at Rs5.65 on 1.005m shares. National Asset Leasing traded one paisa lower at 98 paisa on 0.176m shares.