December 27, 2001	Thursday	Shawwal 11, 1422

KARACHI, Dec 26: Stocks on Wednesday resisted fresh decline as mid-session strong covering purchases in pivotals allowed the market to finish on a mixed note amid a moderately active trading. The KSE 100-share index was off 2.43 points at 1,320.62 after early rising by 13 points.

Although the border situation was still tense owing to reports of cross-border firing, fears of an imminent attack were allayed at least for the near-term followed by firm stand taken by President Pervez Musharraf on the developing situation.

Active short-covering in the energy shares, notably National Refinery, Pakistan Oilfields and PSO and some others enabled the market to build up a rally on the previous plunge.

However, investors still lacked confidence to go in a big way as the revival of year-end buying, which generally creates boom-like conditions is fading, although a couple of sessions left before the year is out.

The market’s volatile behaviour is well-reflected in the KSE 100-share index, which after opening down by four points rose by 13 points on active short-covering but finished lower by 2.43 points at 1,320.62 owing to late profit-selling.

Some analysts also attributed the market’s erratic price pattern to a tough election for the chairman and the directors of the KSE for the year 2002 as leading brokers were busy lobbying for their respective candidates.

Unlike the last Friday session, which signalled the market’s virtual crash amid fears of war with India owing to cross-border firing, there was no trace of the panic, though investors played safe for obvious reasons.

“The border situation continues to be tense and may took its toll in the sessions to come, but institutional support is expected to remain on the higher side because of year-end portfolio adjustments,” stock analysts at W.E. Financials predict.

But whether or not investors will withdraw huge funds from the market after selling long positions is unclear as it will largely depend on the border situation, they added.

“The market has digested all the good news both on the foreign aid and Chinese fronts followed by the president’s visit and is yearning for more to finish the year on a higher note,” say stock analysts at AHRA.

It was perhaps because of this factor that the broader market performed well as pivotals moved on both sides of the fence, low-priced among them managed to finish partially recovered under the lead of PSO, Engro Chemical and ICI Pakistan.

There was no trace of the last Friday’s panic as gainers managed to force a slight edge over the losers, prominent gainers being Elite Publishers, Lever Brothers, BOC Pakistan, Ferozsons Lab and Al-Ghazi Tractors, which posted gains ranging from Rs1.40 to Rs2.40.

Losses on the other hand were fractional, barring Crescent Steel, Millat Tractors, Essa Cement, Shakerganj Sugar, M. Farooq Textiles, Suraj Cotton, Sapphire Fibre and Adamjee Insurance, which suffered fall ranging from Rs1.05 to Rs2.35.

Trading volume fell to 65 million shares owing to KSE annual elections from the previous 89 million shares as gainers held a modest edge over the losers at 67 to 60, out of 161 actives.

Hub-Power led the list of most actives, lower 20 paisa at Rs16.75 on 27m shares followed by PTCL easy by the same amount at Rs15.45 on 18m shares, PSO, sharply higher by Rs1.10, at Rs96.10 on 5m shares, Engro Chemical, firm by 25 paisa at Rs53.25 on 2m shares and ICI Pakistan, higher 20 paisa at Rs39.75 also on 2m shares.

Other actives were led by Adamjee Insurance, off Rs2.35 on 1.817m shares, Sui Northern, firm by 10 paisa at Rs8.90 on 1.588m shares, Nishat Mills, lower 25 paisa on 1.414m shares, Fauji Fertilizer, up 65 paisa on 1.121m shares and MCB, easy 25 paisa on 1.050m shares.

FUTURE SETTLEMENTS: Barring PSO, Sui Northern and Engro Chemical, which managed to finish fractionally higher, all other speculative shares suffered fall, the largest Rs3.00 being in ICI Pakistan at Rs38.50.

Hub-Power led the list of actives, easy by 21 and 26 paisa for both the December and the January settlements at Rs16.70 and 16.90 on 2.525m and 0.678m shares respectively.

PTCL followed it, lower 27 and 20 paisa at Rs14.45 and 14.70 for both settlements on 1.373m and 0.763m shares. Others were traded modestly.

DEFAULTER COMPANIES: Allied Motors came in for modest activity but was quoted unchanged at Rs3.00 on 5,000 shares.