August 27, 2002	Tuesday	Jamadi-us-Saani 17,1423

KARACHI, Aug 26: Stocks on Monday fell across the board on active profit-selling by all and sundry at the inflated levels but there were buyers at the dips followed by predictions of continuation of the recent run-up.

The correction was overdue but the question is now being debated is that whether or not the index could manage to hold on above the recently attained psychological barrier of 1,900 points in the coming sessions.

Many fear it could give in on bear onslaught as its honeymoon with this coveted level has always been elusive after bulls falter halfway for no apparent negative reasons. Some others say the announcement of the date of board meeting of the Hub-Power on Sept 4, in London could keep the market in a good mood in the coming sessions.

Final dividend at the rate of 85 per cent by Lakson Tobacco plus proposed bonus shares at the rate of 20 per cent was well-received on the market, while an interim dividend of 40 per cent by Nestle Milkpak seems to have fallen below the investors expectations. The share value of the former rose by Rs4.95, while the latter fell by Rs10.35. The former has already paid an interim dividend of 20 per cent.

“I don’t think this time bears could make deeper inroads into the domain of the bulls at least for the near-term”, claims an analyst “technical corrections notwithstanding, the market has still to go higher thanks to pent-up demand”.

The rescheduling of $3 billion debt by the US under which it will be repayable in 38 years with a grace period of 15 years and the repayment of balance of $700 million over the next 23 year with a grace period of five years will have a positive impact on the market in the coming sessions, he predicts.

The KSE 100-share index suffered a decline of 16.10 points at 1,909.65 as compared to 1,925.25 at the last weekend as leading base shares including PTCL, Hub-Power and PSO attracted selling at the higher levels.

“After having risen by 82 points or about six per cent and adding Rs17 billion to the market capitalization at Rs446 billion, the market needed correction and that came in the form of selling”, brokers said adding “but we don’t think the current run-up is overdone”.

Apart from technical selling, the general sentiment seems to have been influenced adversely by the scheduled meeting between the delegation of bourses and the SECP high-ups on the issue of induction of four private sector director on boards and the election of the chairmen.

But the perception that issues involved may not be resolved just in a meeting and the tussle will continue prompted selling from the weeker links among the investing public.

Some others claim the visible division among the board members will eventually allow the SECP to have its own way in regard to its recently announced reform agenda leading the country’s bourses to function in future like a viable corporate entity.

However, as the market is in an oversold position owing to last week’s persistent run-up may not face further erosions despite badla volume being on the higher side, some analysts said.

Big gainers were led by Arif Habib Securities, National Refinery, Siemens Pakistan, Packages, Gillette Pakistan, Clover Pakistan and several others, rising by Rs2.75 to Rs8.25, losers were led by PSO, Adamjee Insurance, Millat Tractors, Abbott Lab, ICI Pakistan, Indus Fruits, Rafhan Maize and Shell Pakistan, which suffered falling ranging from Rs1.65 to Rs7.

Minus signs, therefore, dominated the list under the lead of blue chips, which suffered widespread erosions on selling at the higher levels.

Trading volume fell to 180m shares from the weekend’s 334m shares as losers forced a strong lead over the gainers at 176 to 95, with 54 shares holding on to the last levels.

Hub-Power led the list of actives, lower 20 paisa at Rs28.45 on 102m shares followed by PSO, off Rs2 at Rs177 on 19m shares, PTCL, easy 30 paisa at Rs19 also on 19m shares, D.G. Khan Cement, higher 25 paisa at Rs11 on 9m shares and Engro Chemical, up 15 paisa at Rs63.15 on 7m shares.

Other actives were led by Sui Northern, steady five paisa on 3m shares, National Bank, up 25 paisa on 3m shares, ICI Pakistan, off Rs1.65 on 2m shares and ICP SEMF, lower 95 paisa on 1.383m shares.

FORWARD COUNTER: Hub-Power came in for active selling ahead of its board meeting as its both settlements including the September delivery fell by 18 paisa at Rs28.52 for the ruling August and unchanged for the newcomer September settlements at Rs28.70 on 14m and 4m shares respectively.

Engro Chemical, ICI Pakistan and Fauji Fertilizer also remained under pressure for both the settlements and fell sharply, the largest fall of Rs3.45 being in Fauji Fertilizer’s ruling contract at Rs48.75. Barring few exceptions, all other contracts also fell including PTCL.

DEFAULTER COMPANIES: Shares of 10 companies came in for trading under the lead of Saitex Spinning, off 50 paisa at Rs0.50 on 60,000 shares followed by Suzuki Motors Cycles and Allied Motors, easy 65 and 45 paisa at Rs4.50 and Rs11 respectively on 10,000 and 11,000 shares respectively.