Stranraer were knocked off top spot in Scottish League One after a defeat at lowly Stenhousemuir coincided with Morton's 4-0 win over Stirling Albion.
Home midfielder Josh Watt scored the winner in the 20th minute.
Anthony Marenghi ran towards the Stranraer defence and played in Watt, whose shot took a deflection as it flew past goalkeeper David Mitchell.
Paul McMullan missed two good chances for the hosts and Stephen Stirling fired wide for Stranraer.
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