January 23, 2002	Wednesday	Ziqa'ad 8, 1422

KARACHI, Jan 22: Reports of a terrorist attack on the US centre in Kolkata killing four persons jolted a perfectly sound market on Tuesday as investors indulged in hasty selling fearing negative reaction from India.

The market should have run into a deeper recession but above market expectations interim working results from the PTCL after its board meeting limited the extent of the fall, dealers said.

According to PTCL results, its interim after-tax profit swelled to Rs8.501bn as compared to Rs7.156bn last year on sales of Rs31.624bn against last year’s comparable figure of Rs29.483bn, showing an increase of 26 paisa in per share earning at Rs1.66.

But further reaction appears to be more bearish as investors may take quite sometime to get themselves out from impasse of war caused by last month’s attack on the Indian parliament.

Pakistan may not be involved in the attack as claimed by the initial Indian reports, there is a strong possibility that official reaction may blame activists of the recently banned religious parties.

The KSE 100-share index opened 12 points lower on early selling triggered by reports of attack on the US centre in India but selling was well-absorbed by higher interim profit of the PTCL and it rose by eight points. However, it finished lower by 6.35 points followed by reports alleging Pakistan’s involvement, finally ending around 1,464.00.

However, above market expectations interim profit of Rs.8.55bn, ensuring an EPS at Rs.1.66 as compared to previous Rs.1.40, rescued the market from the early fall as well as the negative impact of the attack on the US centre.

“The underlying sentiment was highly nervous as fears of war have again crept in positive developments in the Indo-Pakistan relations,” stock analysts at the AHAL said.

The market may remained highly volatile in the coming sessions as its direction will largely be dependent on the official Indian reaction over the Kolkata incident, they added.

Other stock analysts also held the same view as the act of terrorists could take an ugly turn again in Indo-Pakistan relations.

Price movements were, however, fractional both sides as investors were not inclined to go for a “big kill” awaiting fresh developments on the political front. Insurance sector was the only exception, where all the shares, which came in for trading rose in unison as a reaction to some positive developments in the wake of recent amendments in the act.

Prominent gainers were led by Alico, Adamjee Insurance, Metro Life Insurance, Pakistan Oilfield ahead of board meeting on Jan 24, to examine the interim accounts and Noon Sugar, which rose by Rs.1.10 to 2.05.

Losers were led by Lever Brothers on selling prompted by below market expectations results, Millat Tractors and Fazal Textiles, falling by Rs.2.50 to 9 followed by Dewan Sugar, Shakerganj Sugar, PSO, and Fateh Industries, which suffered fall ranging from Rs