September 26, 2002	Thursday	Rajab 18, 1423

KARACHI, Sept 25: Stocks on Wednesday reacted bearishly to reports of fresh killings in the city as the mid-session witnessed hasty selling in most of the blue chips halting the market journey beyond the 2,000 point index level.

But there was no dearth of buyers at the dips, which reflected that bulls are not inclined to give in at least for the near-term on the strength of good corporate announcements and an attractive bait of privatization of some big state-owned units including PSO.

Dividend announcements from General Tyre, 30 per cent cash and 250 per cent bonus shares and 50 per cent cash by National Refinery were on the higher side of the market expectations but, since came in the backdrop of city killings, failed to boost investor morale, dealers said.

Reports of killing of half a dozen persons in a city NGO office in a terrorist attack did temporarily halt the market’s upward drive as investors took profits at the inflated levels but bulk of the selling was absorbed, notably at the falling prices.

After opening higher, what the dealers called, the extension of the overnight run-up, the KSE 100-share index fell to close below the coveted level of 2,000 at 1,995.31 after earlier touching the day’s peak of 2,068.

Bulk of the panic selling was confined to the pivotals such as PSO, PTCL, and Hub-Power, which took the entire market along with them in the minus column.

“It is the psychological reaction to the city killings as it could lead to conflicting views about the coming national elections,” one broker said. “But I don’t think the current run-up boosted by sell-off of news of some mega issues is overdone.”

But what seems to have worked against the underlying sentiment was Indian allegation about the Pakistan involvement in a temple killings as fears about the retaliation worried investors.

However, the lure of privatization is there and investors are expected to be back in the rings after digesting the negative impact of killings.

“Elections uncertainties are there and so are fears of violence in the coming sessions, the market’s inherent strength tells the current index level could be sustained,” predicts an analyst.

He said higher dividend announcements pouring in daily including those of the ICP mutual funds will continue to play their stimulating role in the coming sessions also generating a good bit of fresh buying.

Although losers forced a strong lead over the gainers some of the leading shares did not follow the market’s general trend and rose under the lead of General Tyre, 9th ICP, Gatron Industries, Fazal Textiles and Wyeth Pakistan, up by Rs. 3.20 to 20.

Other good gainers were led by Kohat Cement, Ferozsons Lab, Cherat Cement, Abbott Lab and Gatron Industries, up by Rs.2 to 4.20.

Losers were led by HinoPak Motors, Aventis Pharma, which has introduced new drug, PSO, Attock Refinery and Grays of Cambridge, off Rs.2.10 to 16.65 followed by Crescent Steel, Pakistan Services and Dilon, falling by Rs.1.25 to 1.60.

Owing to steady selling, the volume figure rose to 169m shares from the previous 154m shares as losers held a fair lead over the gainers at 171 to 114, with 66 shares holding on to the last levels.

PSO led the list of actives, off Rs.4.10 at Rs.194.40 on 41m shares followed by PTCL, easy 15 paisa at Rs.20 on 40m shares, Hub-Power, unchanged at Rs.23.80 on 26m shares, MCB, up 15 paisa at Rs.27.40 on 10m shares, D.G. Khan Cement, unchanged at Rs.12.35 on 8m shares.

Other actives were led by Dewan Salman, lower 30 paisa on 7m shares, ICI Pakistan, easy 10 paisa on 4.040m shares, Adamjee Insurance, unchanged on 4.033m shares, KESC, up 20 paisa on 3.479m shares and Engro Chemical, lower 25 paisa on 2.956m shares.

FORWARD COUNTER: PSO came in for active selling at the higher level and fell by Rs.3.10 and 4.25 for both the October and the ruling September settlements at Rs.157.50 and 194.30 on 3m and 8.133m shares respectively.

PTCL and Hub-Power followed it. While the former was lower by 7 and 13 paisa for both the contracts at 20.28 and 20.05, on 2.781m and 4.114m shares respectively, the latter fell fractionally by 0.01 and 0.5 paisa at Rs.17.60 and 23.75 on 3.202m and 4.606m shares for September delivery.

DEFAULTER COMPANIES: Schon Modaraba again came in for active support but was held unchanged at Rs.0.50 on 10,000 shares followed Sahrish Textiles, up five paisa at Rs.0.75 on 5,500 shares and Suzuki Motorcycle, lower five paisa at Rs.4.90 on 5,000 shares. Others were traded modestly.

BOARD MEETINGS: World Call, Union Bank, on Sept 27, Allied Bank Modaraba, International Multi-Leasing Corporation, Hajveri Modaraba, Fidelity Leasing Modaraba on Sept 28, Khadim Ali Shah Bukhari & Co, Dewan Farooq Motors, Kohinoor Power, on Sept 28, Investec Mutual Fund, Investec Securities and Japan Power on Sept 30.

DIVIDEND: Grays of Cambridge 110 per cent, Kohinoor Genertek 7.5 per cent.