December 4, 2001	Tuesday	Ramazan 18, 1422

KARACHI, Dec 3: Shares on Monday turned in relatively better performance under the lead of blue chips followed by active short-covering at the lower levels but the market lacked any special feature both in terms of large activity or a big gain. The KSE 100-share index rose by 10.56 points at 1,365.62.

A 200 per cent cash dividend by Grays of Cambridge did not stir any speculative selling in its share because of shortage of floating stock as the rate of payment compared unfavourably with the previous year’s payout of 400 per cent cash plus 25 per cent bonus shares. However, it has risen by Rs.75 in the sessions preceding the dividend announcement.

Other dividend announcements from Pak Reinsurance Co, Dewan Salman, Kohinoor Genertek and right shares of 100 per cent by Bolan Bank were below the market expectations.

The general perception is that a considerable fall in “badla” business over the week is expected to give the needed push to hereto indecisive market in the coming weeks, one broker said adding “much will depend on the behaviour of the institutional traders.”

The KSE 100-share index rose by 10.56 points at 1,365.62 as compared to 1,355.06 at the fag-end of the last week, reflecting the strength of leading base shares including PTCL and Hubco.

Stock analysts at the W.E.Financial Services predict the index could give repeat performance of the previous week and after early attempting to breach the psychological barrier of 1,400 points, may falter half way in the absence of strong follow-up support.

But long-term market outlook appears a bit bullish on the ground that basic economic factors are undergoing a major change, they said adding “much will depend on the size of the Poverty Reduction and Growth Facility (PRGF) due to be announced during the next couple of days.”

The same view is also held by the stock analysts at the AHRL and Moosani Securities who predict that the approval of the PRGF could pave the way for a chain of foreign aid on other accounts including loan rescheduling facility at the Paris Club meeting.

“The release of funds under PRGF could mean further boost to forex reserves and in turn strong rupee and lower debt repayments and trade deficit,” stock analysts at the Finex Securities say.

Thus all eyes are focused on the inflow of promised foreign aid for supporting the US war on terrorism and its impact on the economy as well as the capital markets.

All the low-priced pivotals came in for active short-covering at the lower levels under the lead of PSO, which rose by Rs.2.15 at Rs.102.

Other good gainers included Muslim Insurance, Mari Gas, Crescent Steel and Lever Brothers, which rose by one rupee to Rs.3.

Losers were led by 9th ICP Mutual Fund, International Investment Bank, Faisal Spinning, Saif Textiles, Shell Pakistan, Packages and Shezan International, falling by one rupee to Rs.2.20.

But largest decline of Rs.18 was again noted in Wyeth Pakistan, which has shed about Rs.90 over the week for no apparent bearish reason. Its share is following the lead of Colgate Pakistan, which had also fell sharply daily during the last two weeks, losing about Rs.35 for its 10 rupee share.

Trading volume was, however, far below the normal average figure of well over 50m shares as Hubco was traded spot and so will other pivotals including PTCL and Sui Northern by the next week.

The gainers maintained a modest edge over the losers at 64 to 60, out of 158 actives, amid slow volume of 39m shares.

PTCL was leading among the actives, up 30 paisa at Rs.18.05 on 18m shares, PSO, higher by Rs.2.15 at Rs.102 on 6m shares, Hub-Power spot, higher 50 paisa at Rs.19.85 on 5m shares, Engro Chemical, up 60 paisa at Rs.55.85 on 2m shares, ICI Pakistan, firm by 55 paisa at Rs.44.05 also on 2m shares, Sui Northern, up 15 paisa at Rs.11.25 on 1.445mm shares and Adamjee Insurance, higher 45 paisa at Rs.35.80 on 1.234m shares.

NATIONAL BANK: Trading interest in its share lacked aggressiveness as till the close only 0.101m shares changed hands, off five paisa at Rs.12.55, which incidentally was the day’s lowest bid. The highest was touched at Rs.12.80, average rate being Rs.12.70.

FUTURE CONTRACTS: Bulk of the activity remained confined to Hub-Power and PTCL, up 50 paisa and 17 paisa at Rs.18 and 16.05 respectively on 2.673m and 2.505m shares each. PSO was marked up by Rs.1.55 at Rs.102.55 on 0.201m shares.

DEFAULTER COMPANIES: Allied Motors and Suzuki Motorcycle came in for alternate bouts of buying and selling amid slow deals. While the former fell by five paisa at Rs.2.95, the latter remained unchanged at Rs.1.25 on 500 shares each.

DIVIDEND: Grays of Cambridge cash 200 per cent, Dewan Salman bonus shares 12.5 per cent, Kohinoor Genertek 7.5 per cent, Bolan Bank 100 per cent right shares, Universal Leasing, Data Agro, Gharibwal Cement, Mustehkam Cement, Dandot Cement, Trust Securities & Brokerage, Burma Oils, International multi-Leasing, Generteck Pakistan, ADK Securities & safe Deposit Co and First Capital Mutual Fund, all nil for the year ended June 30, 2001.

BOARD MEETINGS: Pakistan Industrial & Commercial Leasing on Dec 4, Interfund Modaraba Dec 5, Transmission Engineering, Long-Term Venture Capital Modaraba, Lawrencepur Woollen, Jahangir Siddiqi Investment Bank, United Insurance, Suhail Jute, Chakwal Cement, Maqbool Company, Pakistan PVC, and Capital Asset Leasing Corporation, all on Dec 6, Sarhad Cigarette, BOC Pakistan, Constellation Modaraba, Inter-Asia Leasing,Tri Star Mutual Fund, Tri Star Polyester, Tri Star Modaraba, and second Tri-Star Modaraba on Dec 7, Gammon Pakistan and Lafayette Industrial Synthetics on Dec 8.