June 4, 2002	Tuesday	Rabi-ul-Awwal 22,1423

KARACHI, June 3: Stocks on Monday gave another insipid performance, as investors were not inclined to make fresh commitments as fears of war with India continued to be a dominating inhibiting factor behind the relatively dull activity. The KSE 100-share index suffered a fresh fall of 15.66 points at 1,647.69.

Evacuation of foreigners from India and Pakistan at the call of their respective countries has reinforced the investor apprehensions about the existing war hysteria, says a leading member of the KSE adding that threat of an Indian attack now has assumed new dimensions.

“All eyes are now focused on Almaty amid hopes of a possible meeting between president Pervez and Indian prime minister Vajpayee,” analysts said adding “there could be fresh hasty sell-off if India did not respond to Pakistan’s peace overtures on a foreign land.”

There was, therefore, a relative calm on the market as leading buyers and sellers adhered to the sidelines awaiting news from Almaty and price changes were fractional barring the energy shares, which came in for active selling at the inflated levels and fell sharply under the lead of Pakistan Oilfields and PSO.

However, leading investors and financial institutions held on to their holdings apparently awaiting some positive results from the Almaty meeting leading to defusing of tension between the two neighbours.

“Whether the Russian president could be a peace broker between the two warring nations after meeting the heads of the two governments is a question being debated in the market,” says one broker and “if he succeeds the market will face a buying euphoria reminiscent of boom conditions.”

The falling volumes reflect that investors are awaiting the outcome of peace initiatives launched from various quarters including the US to avert an imminent conflict between India and Pakistan and their failure could mean anything to the already shaky and nervous market.

Bulk of the selling remained confined to blue chips and overvalued shares as most of them still ensure hefty capital gains but in the absence of matching buying from any quarters they kept falling without finding ready buyers.

“Most of the leading shares such as PSO are manoeuvring to breach through their circuit breakers (limit-gain and limit-fall price ceilings), and post-Almaty summit sessions may witness a free for all if there are no positive initiative to defuse the current Indo-Pak tension on the borders,” most analysts believe.

All was, however, not bad with the broader market as some of the leading shares managed to look up under the lead of Habib Insurance,Lakson Tobacco, Husein Industries, New Jubilee Insurance and Grays of Cambridge, which were quoted higher by one rupee to Rs.5.

Losers were led by Aventis Pharma, National Refinery, Engro Chemical, Shell Pakistan, Pakistan Oilfields, PSO and Wyeth Pakistan, off by one rupee to Rs.5, the largest decline of Rs.3.20 and 5 being in PSO and Wyeth Pakistan.

Shafiq Textiles, Glaxo-Wellcome, BOC Pakistan, Packages and Treet Corporation also came in for stray selling and fell by one rupee to Rs.1.30.

Trading volume further fell to 57m shares from the previous 91m shares as losers maintained a fair lead over the gains at 153 to 51, with 54 shares holding on to the last levels.

Hub-Power again topped the list of actives, off 35 paisa at Rs.22.45 on 26m shares followed by PTCL, easy five paisa at Rs.15.40 on 15m shares, PSO, off Rs.3.20 at Rs.125.65 on 2.687m shares, Sui Northern Gas, lower 30 paisa at Rs.12.90 on 2.457m shares, and FFC-Jordan Fertilizer, easy 20 paisa at Rs.6.45 on 2.080m shares.

Other actives were led by KESC, easy five paisa on 1.512m shares, ICI Pakistan, off 45 paisa on 1.393m shares, Pak PTA, easy five paisa on 0.763m shares, Engro Chemical, lower Rs.1.35 on 0.616m shares and Fauji Fertilizer, easy 40 paisa on 0.448m shares.

FUTURE CONTRACTS: Forward counter also followed the lead of the ready section where all the shares suffered fresh pruning under the lead of PSO, off Rs.3.05 at Rs.125.75 on 1.068m shares.

Hub-Power was again actively traded, lower 41 paisa at Rs.22.70 on 6.678m shares followed by PTCL, lower 15 paisa at Rs.15.55 on 2.282m shares. Other shares were modestly traded but mostly on the lower side.

DEFAULTER COMPANIES: Ravi Rayon again came in for active trading at the previous rate of Rs.5 on 33,200 shares followed by Suzuki Motorcycles, easy five paisa at Rs.4.80 on 4,000 shares and Allied Motors, off 50 paisa at Rs.10.75 on 3,500 shares.