July 4, 2002	Thursday	Rabi-us-Sani 22,1423

KARACHI, July 3: Stocks on Wednesday turned mixed as late pruning in some of the pivotals followed by stray profit-selling slowed down the new fiscal rally, but analysts predict a major boost to trading in the coming weeks because of market’s oversold position. The KSE index shed 5.08 points at 1,799.88, fractionally off the psychological barrier.

After early rise on active follow-up support, the market leaders came in for profit-selling for no apparent bearish reasons, although selling was well-absorbed at the dips.

“I don’t think the technical rally is overdone,” one analyst said adding “the market has the reasons to behave orderly on the strength of some basic fundamentals.”

However, the performance of the broader market reflects investors just consolidated their positions as there were no signs of the return of the bear market at least for the near-term.

The KSE 100-share index reacted below the psychological barrier of 1,900 at 1,799,88 as compared to previous 1,804.96 a day earlier as all the leading base shares including PTCL, Hub-Power and PSO fell modestly.

For the third time during the last about four months, the index crossed the Rubicon or the inhibiting index level of 1900 points but the very next day it reacted from the peak.

No one is inclined to give specific reasons behind the market’s ability to look beyond this level, notably in the backdrop of the prevailing basic facts including a good budget and more than a half dozen incentives to boost stock trading.

Although most analysts are now eyeing the index level of 2,000 point within the current fiscal, no one has the courage and the conviction to say “no to unwarranted selling beyond the 1,900 level.”

“A powerful section of brokerage houses including the leading bears think beyond this level is the domain of the bulls and that they abhor the idea for obvious reasons,” one broker says.

And that is perhaps why it moves between the pre-determined level of 1,700 and 1,900 but don’t think it is now relevant and the “vicious circle is heading for its Waterloo within the next couple of weeks.”

It was perhaps in this background that a section beyond the speculators has broad-based their operations covering some promising second-liners also to balance the market trend if pivotals are cornered.

Plus signs held a comfortable lead over the minus ones, although most of the gains were fractional barring Attock Cement, Javedan Cement, Lever Brothers and Attock Refinery up by Rs.1.50 to 3.60. Third ICP Mutual Fund, Security Bank, Gadoon Textiles, Shahtaj Sugar, and Kohinoor Weaving also rose by one rupee to Rs.1.25.

Losers were led by Network Leasing, PSO, Sazgar Engineering, Pakistan Services, BOC Pakistan, EFU Life Insurance, Ghani Glass and Abbott Lab, off one rupee to Rs.2.

Trading volume though shrank to 142.019m shares from the previous 191m shares advancing shares maintained a fair lead over the losing ones at 134 to 120, with 63 shares holding on to the last levels.

Hub-Power again led the list of actives, easy five paisa at Rs.23.90 on 54m shares followed by PTCL, lower 15 paisa at Rs.17.50 on 33m shares, PSO, off one rupee at Rs.141.15 on 9m shares, National Bank, up 40 paisa at Rs.21.55 on 8.472m shares and D.G. Khan Cement, lower 10 paisa at Rs.10.20 on 7m shares.

Other actives were led by Fauji Fertilizer, up 50 paisa on 3m shares, Chakwal Cement, firm by 25 paisa on 2.682m shares, Engro Chemical, up 25 paisa on 2.619m shares, Adamjee Insurance, higher 40 paisa on 2.589m shares and ICI Pakistan, steady by 20 paisa on 2.477m shares.

FUTURE CONTRACTS: Forward counter also followed the lead of the ready section where pivotals came in for active selling and fell fractionally under the lead of Hub-Power, easy five paisa at Rs.24 on 8m shares, PSO, off one rupee at Rs.142.10 on 3.561m shares and PTCL, lower 15 paisa at Rs.17.65 on 3.171m shares. Others were traded modestly.

DEFAULTER COMPANIES: Activity on this counter remained slow in the absence of strong support from any quarter. Noorie Textiles came in for stray support at the overnight rate of Rs.0.50 on 2,500 shares, followed by Metropolitan Steel, up one rupee on reports of its sell-off, at Rs. 2.75 on 1,500 shares and Crescent Board, lower 10 paisa at Rs.3.50 also on 1,500 shares.