September 10, 2002	Tuesday	Rajab 2, 1423

KARACHI, Sept 9: After opening higher, the KSE 100-share index on Monday failed to stay above the coveted level of 2,000 points as bears ended bull supremacy after indulging in active selling in the leading base shares. It finished off about 28 points at 1,981.17.

However, steep decline in the turnover figure reflects bears targeted the leading base shares just to demonstrate their power as market trend-setters but failed to evoke sympathetic selling from the other quarters.

“I don’t think bulls can be so easily defeated in a market having to its credit more positive news as compared to negative ones”, says a broker “all the good news are still on their side”.

The index finally ended at 1,981.17 points as compared to previous 2,008.86, off 27.69 points or 1.38 per cent owing to active selling in PTCL, Hub-Power and PSO, which together hold a weightage of 50 per cent in it.

“The bull honeymoon with the coveted index level of 2,000 may not be over”, commenting on the snap reversal of the index and bear manoeuvring power says a leading stock analyst “bulls now have more options and will-power than some months back to fight out their way to a decisive victory”.

Others maintain there is nothing wrong with the snap reaction as it is the part of share business and in most cases adds to the inherent strength of the market.

“An attractive bait of sell-off of the oil giant PSO and some others including disinvestment of five per cent more shares of the National Bank and higher dividend announcements from some of the leading companies are in the pipeline to boost investor confidence in the market’s ability to stay above the 2,000 point index level”, they added.

The general perception about the future market direction is that it could maintain its current upward thrust, technical corrections notwithstanding on the strength of developing financial scenario.

Presence of foreign fund buying on selected counters and steady inflow of liquid funds from the dollar trade to the share business will continue to inspire fresh buying from the general investors as well as day traders.

Barring Adamjee Insurance and some other leading shares, most of the pivotals came in for active selling and fell reacted under the lead of PSO, which fell Rs4.25.

Some of the leading ICP mutual funds came in for active support ahead of their privatization and rose by Rs1.40 to Rs2.60 for 13th, 10 and 9th ICPs, followed by Gillette Pakistan, Al-Abid Silk, Artistic Denim, Shafiq Textiles, Unilever Pakistan (former Lever Brothers Pakistan) and Spencer Pakistan, up by Rs1.95 to Rs7.

Losers dominated the list under the lead of energy shares and some leading MNCs including BOC Pakistan, Pakistan Oilfields, Parke-Davis, and Wyeth Pakistan, off Rs5.25 to Rs9.15, biggest decline of Rs17 and Rs18 being in Wyeth Pakistan and Parke-Davis. Trading volume was modest at 114m shares, reflecting the absence of leading sellers as losers forced a strong lead over the gainers at 176 to 79, with 52 shares holding on to the last levels.

Hub-Power led the list of actives, off 30 paisa at Rs27.65 on 32m shares, followed by PTCL, lower 40 paisa at Rs19.95 on 27m shares, PSO, sharply lower by Rs4.25 at Rs198.95 on 15m shares, Adamjee Insurance, higher by Rs1.10 at Rs44.80 on 8m shares, MCB, lower 60 paisa at Rs26.60 on 7m shares and National Bank, easy 35 paisa at Rs23.75 on 2m shares and ICP SEMF, off Rs1.05 at Rs27.15 on 1.213m shares.

Other actives were led by D.G. Khan Cement, easy five paisa on 7m shares, Sui Northern, lower 30 paisa on 1.382m shares and FFC-Jordan Fertilizer, down 10 paisa on 1.260m shares.

FORWARD COUNTER: Hub-Power and PSO came in for active selling at the higher levels and fell sharply lower by Rs3.45 and Rs4.40 at Rs24.55 and Rs199.60 on 2.894m and 4.683m shares respectively.

PTCL also ran into selling and was marked down by 35 paisa at Rs20.10 on 4.158m shares, while all others were modestly traded, MCB and ICI Pakistan being leading among them.

DEFAULTER COMPANIES: Active trading was again witnessed on this counter where shares of 16 companies came in for alternate bouts of buying and selling. Metropolitan Steel was leading among them, unchanged at Rs2.95 on 9,500 shares followed by Custodian Modaraba, lower 35 paisa at Rs2.75 on 6,500 shares and Saitex Spinning, up 10 paisa at Rs0.85 on 3,500 shares.

DIVIDEND: Karam Ceramics, cash 17.5 per cent, Rupali Polyester, final 20 per cent, Prime Insurance, right shares at the rate of 100 per cent at a discount of Rs3 each for a 10-rupee share, Prime Commercial Bank, Tri-Star Modaraba and Gammon Pakistan, both nil for the year ended June 30, 2002.