June 15, 2002	Saturday	Rabi-us-Sani 3, 1423

KARACHI, June 14: A bomb blast close to the US consulate on Friday, killing nine persons and injuring many others, intercepted the market’s pre-budget rally as investors hastened to off-load long speculative positions built-up earlier amid a near-panic. The KSE 100-share index shed another about 16 points at 1,768.

For a while there was panic in the trading hall as investors tried to get out of the market after indulging in hasty selling. However, the situation improved a bit at the fag-end of the session thanks to stray pre-budget short-covering.

Speculative issues on the forward counter, however, remained under pressure throughout the session, with some of them breaching through their circuit breaker under the lead of PSO, while some others including Hub-Power were traded close to it.

As the reports of bomb blast reached the market around 11.30 p.m., a buoyant market powered by pre-budget speculative buying was pushed into the reverse gear and shed 20 points within no time after the blast.

However, the situation was saved by strong institutional intervention and covering purchases related to pre-budget leaks, notably in the fertilizer sector. The index finally ended off 15.81 points at 1,768, maintaining most of the gains netted earlier the week.

“The national budget is due to be announced tomorrow and how it tackles the current economic problems, boost investment and takes steps to attract foreign investment will guide the future market direction,” analysts said.

But as the new budget is being announced in very difficult conditions in the backdrop of post-Afghan war economic setbacks, falling industrial productivity and lower GDP growth rate at 3.6 per cent, it could be very tight sans expected incentives, they added.

High hopes associated with the US defence secretary visit were dashed after he announced that he did not bring any peace plan and India and Pakistan has to sort out their problems bilaterally.

“The tension between the warring countries has eased but there is no change in the ground situation,” he remarked at a press conference. But investors failed to understand what he meant to convey.

Most of the either-way changes were fractional amid narrow price movements. However, Gulshan Spinning, Shaheen Cotton, Nafees Cotton, Pakistan Tobacco, BOC Pakistan, Wyeth Pakistan and some others managed to show modest gains ranging from one rupee to Rs.3.

Losers were led by Engro Chemical, Attock Refinery, Pakistan Oilfields, Lever Brothers and PSO, off Rs.1.25 to 2.85, while other declines were fractional.

Partly to weekend selling and partly to bomb blast, the volume rose to 116.244m shares but losers maintained a strong lead over the gainers at 159 to 77, with 58 shares holding on to the last levels.

Hub-Power topped the list of most actives, off 45 paisa at Rs.32.15 but did not breach the circuit breaker on 33m shares followed by the PTCL, easy 30 paisa at Rs.17.30 on 26m shares, National Bank, unchanged at Rs.20.10 on 14m shares, PSO, off Rs.2.85 at Rs.140.90 on 9m shares and KESC, unchanged at Rs.5.35 on 6m shares.

Other actives were led by Chakwal Cement, up 70 paisa on 6m shares, Engro Chemical, off Rs.1.25 on 3m shares, Telecard, lower 25 paisa on 3m shares, FFC-Jordan Fertilizer, easy five paisa also on 3m shares, and MCB, lower 30 paisa on 2.335m shares.

FUTURE CONTRACTS: Speculative issues on the forward counter fell across the board on panic selling, major loser being PSO, off Rs.141.85 on 4.570m shares followed by Hub-Power, easy 40 paisa at Rs.23.25 on 9.753m shares and PTCL, lower 25 paisa at Rs.17.45 on 5.225m shares.

DEFAULTER COMPANIES: Shares of nine companies came in for trading under the lead of Suzuki Motor Cycles, easy 25 paisa at Rs.4.75 on 5,000 shares followed by Mehran Jute, lower five paisa at Rs.0.95 on 4,500 shares and Allied Motors, off 15 paisa at Rs.9.85 on 3,000 shares.