KARACHI, Nov 12: The US aid package of $1bn seems to have failed to enthuse investors as they hastened to take profits at the early rise before institutional traders indulged in massive selling in pivotals.

Selling in some of the blue chips, notably in ICI Pakistan was so aggressive that the KSE authorities have, under the rules, to apply circuit breaker to forestall further decline in their share values.

Dividend announcements from Millat Tractors, ICP Mutual Funds and Pakistan Paper Products at 150, five to 37 and 25 per cent and some others were on the higher side of the market perceptions but failed to check the bear selling.

However, the earlier reaction to the Musharraf-Bush meeting and reports of $1bn aid package and promise of debt writeoff was positive as the KSE 100-share index rose to touch the psychological barrier of 1,400 points. The closing was easy around 1,369.03, off 13.64 points as it failed to sustain the run-up on mid-session selling.

But some rethinking on the entire spectrum of the Pak-US relations in the backdrop of attack on Afghanistan and logistic facilities provided by this country, the package was billed as “peanut”, says a leading broker.

“Investors were eying a $12bn debt writeoff and an aid package of at least $6bn to compensate for both foreign and local business losses due to Afghan war, but announcement from Washington disappointed them,” stock analysts said.

But analysts at the W.E. Financial Services say to expect beyond $1bn in addition to already given benefits allied to lifting of economic sanctions may amount to “asking for the moon,” but the aid pipeline may not have been shut “it has just been reopened.”

“Investors are expected to be back in the market after having some second thoughts on the US aid package as combined with other trade benefits the figure may look pretty formidable,” stock analysts at the Finex Securities believe.

Some independent analysts say the market will take a definite shape after the current aid-related euphoria is over and what the economy has gained at the end of Afghan war will determine its future direction.

“The fallout of Afghan war could work both ways of the market but it is too early to have a bullish overview of the developing scenario,” stock analysts at Moosani Securities predict.

It was perhaps in this background that the market failed to sustain the early run-up and fell across the board despite good performance turned in by PTCL and Sui Northern. Weakness of Hubco, ICI Pakistan and PSO weighed heavily against the underlying sentiment.

The largest decline of Rs.5.30, 16 and 18.60 were noted in Shell Pakistan, Rafhan Maize Products and Lever Brothers Pakistan, which remained under pressure throughout the session followed by conflicting reports about the sales and profits.

Other prominent losers were led by EFU Life Insurance, PSO, BOC Pakistan, Glaxo-Wellcome, ICI Pakistan and Packages, which suffered fall ranging from Rs.2 to 3.

Millat Tractors was leading among the gainers, which responded favourably to a record cash dividend of 150 per cent, up Rs.5.40 followed by Nestle MilkPak, ICP SEMF, 8th and 13th ICPs, in response to good dividend, Berger Paints, Karam Ceramics, Murree Brewery, and General Tyre, which rose by Rs.1.25 to 2.25.

Trading volume fell to 166m shares from the previous 174m shares as losers forced a strong lead over the gainers at 94 to 44, out of 189 actives.

Hubco topped the list of most actives, off one rupee at Rs.19.60 on 67m shares followed by PTCL, up 10 paisa at Rs.17.95 on 61m shares, Sui Northern Gas, up 20 paisa at Rs.11.70 on 12m shares, ICI Pakistan, off Rs.2.40 at Rs.45.90 on 4m shares and PSO, down Rs.280 at Rs.101.10 also on 4m shares.

Among the other actives, Engro Chemical, was leading, off Rs.1.05 on 4m shares, MCB, lower 80 paisa on 3.270m shares, Fauji Fertilizer, easy 35 paisa on 2.440 shares, Nishat Mills, off 60 paisa on 1.249m shares and FFC-Jordan Fertilizer, easy five paisa on 0.916m shares.

FUTURE CONTRACTS: Barring Sui Northern Gas, which managed to post a modest gain of 20 paisa at Rs.11.50 on buying triggered by market talk of a good cash dividend plus bonus shares on 0.140m shares, all other shares suffered fall under the lead of Hub-Power and PSO, off Rs.1.05 and 3.50 at Rs.19.70 and 96 on 2.968m and 50,000 shares respectively.