May 8, 2002	Wednesday	Safar 24, 1423

KARACHI, May 7: Stocks on Tuesday fell across the board as heavy selling in most of the pivotals at the inflated levels pushed the entire market into a deeper recession. The KSE 100-share index lost another 39 points or 2.6 per cent at 1,844.82.

The overnight downdrift was, therefore, further accelerated as investors continued to unload long positions built-up in the post-referendum buying euphoria in the absence of follow-up support from any quarter.

No one could deny the fact that the market was in a highly overbought position but no one expected hasty sell-off in the backdrop of positive fundamentals.

The KSE 100-share index eroded another 38.76 points or 2.25 per cent at 1,844.82, breaching through the second line of defence at 1,850 point after Hub-Power received massive battering and accounted for more than a half of the total volume of 170m at 89m shares.

“It could lose another 20 or 25 points before rebounding on technical grounds,” stock analysts at the Al-Mal Securities predict basing their assessment on positive basic economic fundamentals.

Massive selling in Hub-Power reflects that the market was in a highly overbought position and needed correction that came in the form of selling at the inflated levels. The interesting feature was that there were buyers at each dip, indicating that its future outlook is quite bullish.

But some other stock analysts fear the situation on the borders, notably in the wake of Indian war games and post-referendum political polarization could keep the buying interest in a low key in the absence of long-term buying.

“Both jobbers and short-term dealers now are no more inclined to hold on to their positions for obvious reasons and getting out of the market after leaving a long list of casualties behind them,” stock analysts at the Moosani Securities say.

But they ruled out the possibility of any big fresh shakeout as technically, the market has already adjusted itself to overbought positions on certain quarters.

Wyeth Pakistan led the list of leading losers, off Rs.42.75 at Rs.527.25 on selling prompted by reports of passing over of the dividend for the last year owing to losses in sales.

Other prominent losers included Din Textiles, Adamjee insurance, Premier Sugar, Attock Refinery, Mari Gas, National Refinery, PSO, Shell Pakistan, BOC Pakistan, Siemens Pakistan and Glaxo-Wellcome, off Rs.2.15 to Rs.5.

Some of the leading shares, however, managed to finish higher under the lead of Bestway Cement, Berger Paints, Sitar Chemical, Wah Noble Chemicals, Security Papers and Bata Pakistan, off one rupee to Rs.2.

But the largest gain was again recorded in Parke-Davis, which posted a fresh rise of Rs.21.65 on reports of higher dividend.

Owing to heavy selling in the pivotals, volume figure soared to 179m shares as losers further intensified the lead over the gainers at 216 to 67, with 36 shares holding on to the last levels.

The notable feature was that the number of listed companies fell to 726, as 15 more companies were delisted after the buying back shares from the minority shareholders at prices set by the KSE.

Hub-Power topped the list of most actives, off 25 paisa 89m shares followed by PTCL, lower 55 paisa at Rs.18.60 on 29m shares, PSO, off Rs.2.15 at Rs.160.85 on 10m shares, FFC-Jordan Fertilizer, easy 45 paisa at Rs.6.65 on 9m shares and KESC, lower 50 paisa at Rs.4.45 on 7m shares.

Other actives were led by Sui Northern, off 35 paisa on 5m shares, National Bank, lower 25 paisa on 3.355m shares, Adamjee Insurance, off Rs.3.10 on 2.933m shares, ICI Pakistan, lower 95 paisa on 2.752m shares and MCB, off Rs.1.20 on 2.718m shares.

FUTURE CONTRACTS: Forward counter also followed the lead of the ready section where MCB, Engro Chemical and PSO suffered fall ranging from Rs.1.10 to 2.10 at Rs.27.50, 62.05 and 161.90 respectively on light volume.

Hub-Power came in for heavy selling in sympathy with its counterpart in the ready section, falling 35 paisa at Rs.25.25 on 10m shares followed by PTCL, lower 45 paisa at Rs.18.80 on 2.760m shares.

DEFAULTER COMPANIES: Undervalued shares on this counter came in for renewed alternate bouts of buying and selling under the lead of Mehran Jute, unchanged at Rs.0.50 on 50,000 shares followed by Suzuki Motorcycle, lower 15 paisa at Rs.4.15 on 20,000 shares and Allied Motors, easy 25 paisa at Rs.6 on 19,500 shares.

DIVIDEND: Sana Industries interim at the rate of 30 per cent, Sigma Leasing interim cash five per cent plus right shares 33.33 per cent, United Insurance, right shares 55 per cent and Taj Textiles and Wyeth Pakistan, both nil.