July 12, 2002	Friday	Jamadi-ul-Awwal 1, 1423

KARACHI, July 11: The announcement of date for the national elections failed to enthuse investors as they continued to follow their exit policy for the fourth session in a row on Thursday.

There were not many buyers either even at the falling prices as a light turnover figure reflects. Everyone wanted to play safe until bulls are back in the market and set the recovery process in motion.

The KSE 100-share index fell further by 10.81 points at 1,783.17 as compared to 1,793.98 a day earlier, reflecting the weakness of PTCL and PSO.

The announcement of date of national elections on Oct 10, should have buoyed investors as it has removed the prevailing uncertainty and conflicting rumours but investors appear to be in no mood to be influenced by the positive developments and stayed away.

The rigid positions taken by both the government and the leading political parties on the constitutional package and rejection of the petition seeking removal of condition of graduate for a candidate by the apex court, investors fear, could further widen the gulf between the two power contenders.

“It may be the beginning of selling from short-term investors, who got panicky as the long-awaited new account buying euphoria failed to manifest itself even on the blue chip counters,” on broker said, adding “others may follow soon.”

Short-term dealers, jobbers and some sundry speculators, who have been holding on to their positions built-up during the year-end buying, are disappointed over the market performance in the new year trading and have no option but to indulge in selling as chances of capital gains are receding each session.

What seems to have un-nerved them was reports of institutional selling in blue chips such as PSO and weak-holders anticipating further extension in the bear-run followed suit.

“A spate of selling offers but no matching buying from any quarter reflects that investors are worried over the developing situation on the political front and are not inclined to hold a big stake even on the selected counters,” analysts said.

The postponement of the National Bank board meeting, which was due on Thursday (July 11) to Saturday next for some technical reasons also worked against the sentiment despite the fact that there is a talk of its higher earnings and good dividend.

ICP Mutual Funds attracted good support on reports that a number of buyers have shown interest to buy them when the privatization process is initiated. 10th, 7th and 9th ICP Mutual Funds rose by Rs1.45 to Rs2.70.

But energy shares, on the other hand, remained under pressure amid fears of lower earnings owing to the fortnightly pricing formula. PSO, Shell Pakistan and Pakistan Oilfields were leading among them falling by Rs1.25 to Rs5.25.

Minus signs dominated the list under the lead of Noon Sugar, Shafiq Textiles, Siemens Pakistan, Clariant Pakistan, BOC Pakistan, SK&F, off one rupee to Rs1.25, but the largest decline of Rs10 was noted in Wyeth Pakistan.

Leading gainers were led, among others, by Murree Brewery, Gillette Pakistan and Lever Brothers, which rose by Rs1.45 to Rs13.95.

Trading volume was maintained at the overnight level of 30m shares as losers maintained a fair lead over the gainers at 163 to 82, with 54 holding on to the last levels amid slow dealings.

Hub-Power led the list of actives, unchanged at Rs24.05 on 11m shares followed by PTCL, easy 10 paisa at Rs17.40 on 4m shares, PSO, off Rs1.25 at Rs138.90 on 3m shares, National Bank, lower 15 paisa at Rs20.20 on 2m shares and FFC-Jordan Fertilizer, easy 10 paisa at Rs6.55 on 1m shares.

Other actives were led by KESC, lower 10 paisa on 0.963m shares, Fuaji Fertilizer, off 50 paisa on 0.916m shares, Telecard, lower 15 paisa on 0.905m shares and Sui Northern, easy 15 paisa on 0.729m shares.

FUTURE CONTRACTS: Hub-Power came in for active selling and was marked down by 15 paisa at Rs24.05 on 4.625m shares followed by PSO, sharply down by Rs1.05 at Rs139.70 on 2.082m shares and PTCL, lower 10 paisa at Rs17.50 on 1.482m shares.

DEFAULTER COMPANIES: Shares of a dozen companies came in for trading, the most active among them being M.L.C, firm by five paisa at Rs1.05 on 10,000 shares followed by Shapur Textiles, up 10 paisa at Rs1.60 on 3,000 shares and Crescent Spinning, unchanged at Rs7 on 2,000 shares.