November 27, 2001	Tuesday	Ramazan 11, 1422

KARACHI, Nov 26: Stocks on Monday extended the weekend gains but trading remained relatively sluggish in the absence of strong demand from any quarter including the institutional traders. The KSE 100-share index rose by another 2.07 points at 1,360.89.

Most of the leading textile shares came in for strong covering purchases at the lower levels on the perception that increase in textile export quota and tariff cuts under the recently signed agreement with the European Commission could give the needed push to both exports and textile production.

Selective support was, however, evident on a number of counters by way of replacement buying. Rupali Polyester, for instance, came in for active support after the announcement of 50 per cent cash dividend and so did PSO after being quoted ex-dividend.

Stock analysts at the W.E. Financial Services say the market should have given a favourable reaction to the signing of preferential trade package with the European Commission envisaging cut in tariffs and an increase in textile quota, investors stayed away apparently yearning for immediate stimulants.

However, no one could deny the long-term positive impact of the EU deal both on the industrial and export sectors, which in turn could boost stock trading, they add.

But some others claim a substantial amounts of cash are tied to the recently floated five per cent shares of the National Bank of Pakistan and until they are freed, stock market may remain poorer as far as hard cash is concerned.

The National Bank issue was claimed to be massively oversubscribed as it received, including from the Gulf, a total amount of Rs.745m against offer of Rs.186m. After balloting, possibly by the end of next week or early next week, huge amounts will be freed and are expected to be reploughed in the share business again.

On last Saturday its 10-rupee share finished around Rs.13.60 after hitting the lowest and the highest for the day at Rs.13 and 14 on 1.299m shares.

Stock analysts at the Moosani Securities predict the lean days for the share business may be on their way out as the reopening of the foreign credit lines after the removal of economic sanctions, near-end of the Afghan war are all positive factors, which give the needed push to the sagging market.

“In the changed political scenario, the post-Afghan war Pakistan could well be the envy of foreign investors and the share market could be the chief beneficiary being the vehicle of quick gains,” a leading stock analyst at AHRL Securities predicts.

The current sluggishness is temporary partly because of the holy month, he says adding the current lower levels of some of the pivotals including PTCL, Hub-Power and ex-dividend PSO could well prove an attractive bait for any prospective investor.

But investors were worried over the lower dividend of 130 per cent from the Siemens Pakistan Engineering, which had paid a higher dividend of 150 per cent last year. Brokers said keeping in view the relevant factors the rate is not that bad.

Leading shares led the market decline under the lead of Colgate Pakistan, which had, during the last couple of sessions, shed over Rs.20 for no apparent bearish reports, Lever Brothers, which fell by Rs.3.80 to 8 followed by Treet Corporation, Berger Paints, Jahangir Siddiqi & Co and Gatron Industries, which suffered fall ranging from one rupee to Rs.1.90.

Advancing shares were led by Rupali Polyester, up Rs.4.25 in response to a good dividend of 50 per cent, Knoll Pharma, Abbott Lab, Al-Jadeed Textiles, Karam Ceramics and PSO, which rose by on rupee to Rs.2.50.

Trading volume fell to 36m shares as losers held a modest lead over the gainers at 73 to 53, out of 174 actives.

The most active list was again topped by Hubco, unchanged at Rs.19.50 on 11m shares, PTCL, up 15 paisa at Rs.17.85 on 10m shares, PSO, sharply higher by Rs.2.30 at Rs.97.25 on 3m shares, Nishat Mills, firm by 25 paisa at Rs 16 on 2m shares and D.G.Khan Cement, lower 25 paisa at Rs.6.70 also on 2m shares.

ICI Pakistan led the list of other actives, lower 15 paisa on 1.323m shares, Engro Chemical easy 40 paisa on 1.112m shares, Sui Northern, easy five paisa on 1.044m shares, Dewan Salman, lower 35 paisa on 0.698m shares and MCB, easy 15 paisa on 0.607m shares.

FUTURE CONTRACTS: Mixed trend was seen on this counter where the bulk of the business remained confined to Hub-Power, lower 10 paisa at Rs.19.45 on 0.668m shares followed by PTCL, firm by 10 paisa at Rs.17.80 on 0.190m shares and PSO, sharply higher by Rs.2.50 at Rs.97.50 on 0.189m shares. Other changes were fractional on low volumes.

DEFAULTER COMPANIES: Shares of three companies came in for stray support under the lead of Gammon Pakistan, up 40 paisa at Rs.13.20 on 3,500 shares, followed by Colony Textiles, higher 25 paisa at Rs.9.25 on 1,000 shares and Suzuki Motorcycle, unchanged at Rs.1.25 on 500 shares.

DIVIDEND: Siemens Pakistan: cash 130 per cent. Shabbir Tiles: 25 per cent. WorldCall Payphones: 15 per cent, Safeway Mutual Fund, Fecto Cement, General Leasing Modaraba, Biafo Industries, Sardar Chemical and KESC, all nil for the year ended June 30, 2001.

BOARD MEETINGS: Abbas Engineering Industries on Nov 28, WorldCall Multimedia, Lucky Cement, Grays of Cambridge Pakistan all on Nov 29.