August 7, 2002	Wednesday	Jamadi-ul-Awwal 27,1423

KARACHI, Aug 6: Stocks on Tuesday moved within a narrow groove as investors played on both sides of the fence awaiting the advent of institutional support at the lower levels but were disappointed as it remained conspicuous by its absence till the closing bell.

There was, however, no tangible fallout of the Monday’s terrorist attack on the Christian missionary school in Murree and killing of half a dozen persons. As a matter of fact the market has already digested its negative impact in late Monday trading.

The KSE 100-share index finished with a fractional decline of 1.87 points at 1,780.69 as compared to 1,782.56 a day earlier as after early rise leading base shares, notably PTCL and Hub-Power stayed easy.

Although price changes on all the counters were extremely narrow, reflecting the absence of leading buyers, instances of dividend related stray short-covering were not lacking, notably in the sugar and textile sectors where selected shares rose appreciably.

But the leading market players performed according to their own perceptions apparently having in mind the pre-election scenario and its negative impact on stock trading.

“The law and order situation do worry investors and so do the terrorist attacks and killings of innocent people but currently the market is the victim of its own technicalities”, stock analyst said adding “no one is sure when the normalcy will return to stock trading”.

The protracted bearish spell is unprecedented. Where all the investors and leading bulls who cherish the idea of falling prices have gone is not clear but one thing appears certain that all have united to keep the stock trading in a terribly low-key.

“It is pretty difficult to force any one to buy shares in the larger interest of the community or the general investor until buyers themselves decide where to buy and why”, one broker said.

It is more than a month that the market is passing through a terrible state of uncertainty and most of the genuine investors failed to fathom the en bloc absence of those who keep the wheels moving both sides of the coin.

Election uncertainties are there but in normal pre-elections sessions speculators and bargain-hunters do indulge in either-way speculative trading but currently there are no signs of such an activity even on the blue chip counters.

“Investors are just marking time apparently fearing a negative fallout of the prevailing political polarization and rigid positions taken by the contenders and prefer to keep to the sidelines rather than taking undue risk”, one leading broker thinks.

However, all was not bad with the broader market as some leading shares such as Noon Sugar, International Industries, Spencer & Co, Abbott Lab and Wyeth Pakistan managed to finish higher by Rs1.90 to Rs10 owing to shortage of their floating stock rather than large buying.Adamjee Insurance, Kohinoor Weaving, Sapphire Textiles, Bolan Casting and Shell Pakistan followed them, up one rupee to Rs1.45.

Among the prominent losers, 9th ICP, IGI Insurance, Shell Gas, Glaxo-Wellcome Pakistan and Aventis Pharma were leading, off Rs1.45 to Rs2.95. They were followed by D.M. Textiles, Security Papers and KSB Pumps, off one rupee to Rs1.30.

Traded volume fell to 27m shares from the previous 29m shares as losers maintained a strong lead over the gainers at 145 to 79, with 75 shares holding on to the last levels.

Hub-Power led the list of actives, easy five paisa at Rs24.25 on 5m shares followed by PSO, lower by 25 paisa at Rs138.50 on 3m shares, PTCL, easy five paisa at Rs17.65 also on 3m shares, National Bank, off 35 paisa at Rs19.70 on 2m shares and Adamjee Insurance, lower 50 paisa at Rs36.10 also on 2m shares.

Other actives were led by MCB, up 10 paisa on 1.464m shares, ICI Pakistan, lower 45 paisa on 1.246m shares, FFC-Jordan Fertilizer, unchanged on 0.888m shares and Sui Northern Gas, lower five paisa on 0.887m shares and Telecard, easy 10 paisa on 0.881m shares.

FUTURE CONTRACTS: Speculative issues on the forward counter also ruled easy on renewed selling and fell under the lead of PSO, off 35 paisa at Rs139.05 on 1,676m shares followed by Hub-Power, firm by five paisa at Rs24.45 on 1.663m shares and ICI Pakistan, lower 50 paisa at Rs37.70 on 0.718m shares.

DEFAULTER COMPANIES: Allied Motors came in for active selling at the higher level and ended lower by 15 paisa at Rs9.85 on 38,000 shares. MLC, was marked up by 20 paisa at Re1 on 2,000 shares, while Gammon Pakistan was off 50 paisa at Rs20.75 on 500 shares.