December 16, 2001	Sunday	Ramazan 30, 1422

KARACHI, Dec 15: Stocks finished the pre-eid holiday session on an easy note despite late selling amid fears of border tension with India after the terrorist attack on the Indian parliament and killing of a dozen persons. The KSE 100-share index ended fractionally changed at 1,380.08, easy only 0.25 point.

However, despite Indian threats to attack Azad Kashmir alleging Pakistan based terrorist group behind the attack, there was no panic-selling from any quarter but rather there were buyers at the dips on the perception of a strong economic recovery after the recent positive developments on the foreign aid front.

The terrorist attack on Indian parliament after both the countries traded accusations, though halted the market’s upward drive amid fears of border tension followed by high alert of Pakistan armed forces, the underlying sentiment remained uppishly inclined thanks to the presence of support at the dips. The KSE 100-share index early rose modestly but ended fractionally lower by 0.25 point at 1,380.08.

“The market virtually tossed between the euphoria of positive and negative news at the same time but managed to maintain a steady posture against heavy odds,” stock analysts at the Ali Husain Rajabali said adding “the index could rise by another 50 points if there is no acceleration in the border tension on the Line of Control in Kashmir during the Eid holidays in response to Paris deal.”

The positive news was rescheduling of $12.5 foreign debt by the Paris Club and the negative news was tension on the borders after the terrorist attack on Indian Parliament and the consequent retaliatory threats from across the border on alleged involvement of Pakistan in the attack.

“But I don’t think that the market has taken a serious view of the Indian threat as it did not fell beyond technical levels on the strength of positive news,” stock analysts at the W.E.Financial say.

The situation on the borders appears to be very tense after the high alert of the armed forces and there could be a border tension during the long holiday weekend and in that case the market may fall from its current levels, they add.

The market opened on a higher note as the index was early up by about 10 points on active support aided by reports of rescheduling of $12.5 foreign debt by the Paris Club for a longer period, which will have a saving of $1.2 billion on the payment of interest. But late selling partly due to Eid holidays pushed the market down from the earlier highs.

But the general perception is that the market will receive a needed push to explore new highs before the year is out as the rescheduling of a massive debt by the foreign donors on the strength of a robust economy.

“Pakistan has started getting the benefits of being a front-line country on war on terrorism as a US-led coalition partner, which could lead to its economic revival in the months to come and the consequent boost to stock trading,” leading brokers predict.

The broader market finished mixed on late selling, although some of the leading shares managed to post fresh gains under the lead of Engro Chemical, which rose by Rs.1.20 at Rs.57.20.

Other notable gainers were led by PICIC after a good cash dividend of 12 per cent plus 15 per cent bonus shares, Security Bank, Legler Nafees, Pakistan Telephone Cables, Murree Brewery, Bolan Casting, Shell Pakistan and Premier Sugar, which rose by one rupee to Rs.3.

Losers were led by Bhanero Textiles, off Rs.4.90 followed by Millat Tractors, BOC Pakistan, Ferozsons Lab, Lever Brothers, Trust Modaraba, Sapphire Textiles, Atlas Battery and PSO, which suffered fall ranging from Rs.1.25 to 2.

Trading volume rose to 38m shares from the previous 33m shares but losers held a modest lead over the gainers at 58 to 54, with 36 shares holding on to the last levels.

Hub-Power topped the list of actives, easy five paisa at Rs.18 on 16m shares followed by PTCL, steady by five paisa at Rs.18.15 on 6m shares, PSO, off Rs.1.30 at Rs.99.25 on 4m shares, Engro Chemical, higher by Rs.1.20 at Rs.57.20 on 3m shares and Adamjee Insurance, lower 40 paisa at Rs.36.75 on 1.22m shares.

Other actives were led by PICIC, after the announcement of cash dividend and bonus shares, up one rupee on 1.421m shares, Adamjee Insurance, lower 40 paisa on 1.229m shares and ICI Pakistan, unchanged on 0.805m shares.

FUTURE CONTRACTS: Bulk of the activity remained confined to PTCL, up four paisa at Rs.16.12 on 2.331m shares followed by Hub-Power, easy one paisa at Rs.18.09 on 0.550m shares, other deals were modest.

PSO was the leading among the losers, off Rs.1.40 at Rs.99.50 on 51,000 shares followed by ICI Pakistan, lower 75 paisa at Rs.41.25 on 10,000 shares and Engro Chemical, up 80 paisa at Rs.57.10 on 34,000 shares.

DEFAULTER COMPANIES: Only shares of Colony Textiles came in for stray support and was quoted higher by 30 paisa at Rs.9.30 on 500 shares.

DIVIDEND: Pakistan Industrial Credit & Investment Corporation (PICIC), cash 12 per cent, bonus shares 15 per cent, Ravi Rayon, and Zeal-Pak Cement, both nil for the year ended June 30, 2001, Al-Ghazi Tractors, interim at the rate of 50 per cent for the year ending Dec 31, 2001.