August 14, 2002	Wednesday	Jamadi-us-Saani 4, 1423

KARACHI, Aug 13: Stocks on Tuesday failed to sustain the early run-up and ended with clipped gains followed by profit-selling ahead of the Independence Day holiday on Wednesday but the underlying sentiment remained uppishly inclined thanks to strong support at the dips.

Trading activity remained fairly brisk thanks to renewed heavy buying in Hub-Power and PSO by the foreign investors for the second session in a row.

After hitting the day’s peak level of 1,856, the KSE 100-share index also ended below its chart point of 1,850.00 at 1,846.69, up 3.20 points as some of the leading institutional traders cashed in on the available margin of profits.

“It was a technical correction in the wake of last week’s persistent run-up,” says a leading analyst adding, “I don’t think the market’s upward drive is overdone.”

Advent of foreign support after a long gap caused by fears of law and order situation could give the needed depth to stock trading in the coming weeks as most of the leading are still a “good buy”, he says.

More stimulating news, including board meetings of some mega companies as well as leading MNCs are due during the next month and they could push the market to new peak levels. Most of the leading MNCs tended further higher under the lead of Glaxo-Wellcome and Gillette Pakistan.

A 50-per cent interim dividend by the management of Dubai-based Al-Ghazi Tractors for the year ended June 30, 2002, speaks of the fact that investor perceptions about the dividend-driven rally are not without logic, some brokers said.

Already, a section of leading investors is planning future strategy in the backdrop of coming positive events though on selected counters.

“Election uncertainties are there as the unfolding political scenario could take any turn after the pre-election political meetings and processions are allowed but investors seem to have decided to go by the market fundamentals rather than the external factors,” says a leading broker.

Leading gainers were led by Glaxo-Wellcome Pakistan, Treet Corporation, Gillette Pakistan, Wyeth Pakistan and Pak Reinsurance, up by Rs2.40 to Rs19.80.

They were followed by Jahangir Siddiqui & Co, Sapphire Fibre, Gatron Industries, PSO, Security Papers and some others, rising by one rupee to Rs1.50.

Losers were led by Pakistan Refinery, Al-Ghazi Tractors, Lever Brothers, Nestle MilkPak and Attock Refinery, Valika Art, Adamjee Insurance, Crescent Steel, Lever Brothers, and Noon Pakistan, off one rupee to Rs2.50.

Cement shares also rose followed by reports of increase of Rs25 per bag in the selling price of the commodity. But most of the gains were fractional.

Volume figure was maintained on the higher side at 185m shares as gainers maintained a fair lead over the losers at 130 to 107, with 50 shares holding on to the last levels.

Hub-Power again led the list of most actives, up 20 paisa at Rs26.25 on 63m shares followed by PSO, higher one rupee at Rs148.40 on 26m shares, PTCL, unchanged at the Rs18.60 on 20m shares, D.G. Khan Cement, firm by 50 paisa at Rs10.70 on 12m shares and Engro Chemicals, up 35 paisa at Rs61 on 10m shares.

Other actives were led by National Bank, up 50 paisa on 9.277m shares, MCB, firm by 20 paisa on 6.021m shares, Fauji Fertiliser, higher 70 paisa on 5.238m shares, FFC-Jordan Fertiliser, steady by five paisa on 4.745m shares and Adamjee Insurance, off Rs1.25 on 4.457m shares.

CLEARED LIST: Hub-Power again came in for strong speculative support and ended further higher by 25 paisa at Rs26.35 on 14.787m shares followed by PSO, up 80 paisa at Rs148.45 on 5.588m shares and PTCL, unchanged at Rs18.70 on 3.729m shares. Other forward shares also attracted active bouts of buying and selling.

DEFAULTER COMPANIES: Trading on this counter was relatively slow in the absence of leading players and as a result, shares of only three companies came in for stray support under the lead of Burma Oil, up 60 paisa at Rs9 on 500 shares. Shahpur Textiles and Hafiz Textiles rose five paisa each at Rs1.65 and 4.65, respectively, but without any transaction.

INTERIM DIVIDEND: Al-Ghazi Tractors cash 30 per cent, Kohinoor Raiwind Mills cash 30 per cent, while directors of Prudential Discount & Guarantee House have omitted the dividend for the year ended June 30, 2002.

BOARD MEETINGS: Meezan Bank on Aug 15; Sigma Leasing and Soneri Bank on Aug 17; Aventis Pharma, EFU Life Assurance, Security Leasing Corporation, EFU General Insurance and Merit Packaging all on Aug 20.