January 22, 2002	Tuesday	Ziqa’ad 7, 1422

KARACHI, Jan 21: Stocks on Monday took a technical breather as a section of leading investors took profits at the inflated levels but the broader market performed credibly well thanks to strong support at the dips.

It appears to be a grim battle between the bulls and the bears to tilt the balance in their respective favour, although in the final analysis it proved to be a no-win situation.

The KSE 100-share index early was up by 12 points on strong follow-up support but at the close was down by 8.61 points at 1,470.35 as compared to 1,478.96 at the last weekend, as PTCL and Hubco failed to extend their weekend run-up.

After having added Rs.22 billion to the market capitalization and 104 points to the index during the last week, stocks resumed trading on a higher note but failed to breach through the barrier of 1,500 points on late heavy profit-selling in most of the pivotals.

All the volume leaders fell in unison under the lead of Hub-Power, PTCL, and PSO, never allowing the consolidation forces to stage a rebound, although there were many abortive bull attempts.

“The reaction was inevitable,” stock analysts at the W.E. Financial said “The market, risen by 104 points or about eight per cent last week, needs correction on technical grounds alone.”

But there is nothing to suggest that bears could have a field day as most of the basic economic fundamentals are bullish and could take the market to the level where the bulls want to.

Both Hub-Power and PTCL attracted active selling at the higher levels and so did PSO on market talk of lower earnings owing to fall in selling prices. That is perhaps why it could not sustain the 100-rupee mark.

Selling in PTCL was prompted ahead of the board meeting as a section of dealers was out to push its price down and then to buy followed by rumours of an interim dividend.

Stock analysts at the AHAL forecast a major breakthrough in the sessions ahead as receding fears of war with India could lure foreign investors back in the market and for good reasons also.

Despite selling in pivotals at the higher levels, broader market gave a better performance as out of 245 actives, 123 shares rose and 68 fell, with others remaining unchanged.

Despite profit-selling in the leading blue chips, plus signs again dominated the list under the lead of Glaxo-Wellcome Pakistan, Pakistan Oilfields, Fazal Textiles and Siemens Pakistan, which posted gains ranging from Rs.2 to 10, largest gain of Rs.10 being Siemens Engineering.

Other prominent gainers were led by Alico, IGI Insurance, Shell Pakistan, Elite Publishers, 9th ICP and ICI Pakistan, which rose by one rupee to Rs.10.

Losses on the other hand were fractional barring Blessed Textiles, Sapphire Textiles, Knoll Pharma, PSO and Nestle MilkPak, which suffered fall ranging from one rupee to Rs.5. Knoll attracted selling in the backdrop of its merger with Abbot.

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