November 7, 2002	Thursday	Ramazan 1,1423

KARACHI, Nov 6: Stocks on Wednesday again ran into profit-selling triggered by lurking fears about the political crisis followed by reports that a majority party has sought postponement of the National Assembly session scheduled for Nov 8. The KSE 100-share fell by 34.25 points at 2,223.42.

Being unsure about the positive outcome of behind the scene manoeuvring by the contenders of power to form the government at the centre investors opted for taking profit at the overnight inflated levels.

There was a confusion all around despite the fact that the market resumed trading on a higher note powered by strong selective buying prompted by reports of extension in clearing of badla business (carryover transactions), to 10 days from the current one day. The step has taken by the KSE to forestall panic selling to clear outstanding dues, which in turn destabilize the market.

An idea of the volatility of the KSE index may well be had from the fact that it touched the highest level of the day at 2,275.08 and the lowest at 2,207.56 points, off 34.25 points or 1.52 per cent.

Stock analysts said the postponement of the newly elected National Assembly’s first session could well prove a double-edged weapon for the future political set up as the impending political crisis could mean anything to post-election euphoria.

What is more important is that the demand came from the majority party, which has been claiming the required number of MNAs to form the government at the centre.

“The political situation is now fraught with high-risks”, they said “in similar situations as the prevailing one investors prefer to keep to the sidelines after unloading their extra loading rather than indulging in fresh commitments”.

Currently, the market is toeing the line of political events rather than corporate background news and until the standoff comes to an end, its performance may remain volatile, brokers said.

Most of the high-profile scrips again received heavy battering under the lead of PSO, which shed most of its overnight gains followed by inactive Wyeth Pakistan.

Top gainers were led by Rafhan Maize Products, Pakistan Refinery, HinoPak Motors, Treet Corporation, General Tyre, and Pak Reinsurance Company, up by Rs2 to 17.50.

Losers were led by Dawood Hercules, Nestle MilkPak, Siemens Pakistan, Shell Pakistan and Wyeth Pakistan, off Rs5.80 to 31.50. Other prominent losers were led by Noon Sugar, Attock Refinery, PSO, Al-Ghazi Tractors, Engro Chemical, Glaxo-Wellcome and several other, off by Rs2.10 to 4. ICI Pakistan, 4th ICP Fund, Millat Tractors, Indus Motors and Pak-Suzuki Motors also suffered sharp setback.

Traded volume fell to 297m shares from the previous 393m shares as losers forced a strong lead over the gainers at 189 to 70, with 41 shares, holding on to the last levels.

Hub-Power came in for massive selling at the inflated levels and fell by 30 paisa at Rs26.45 on 100m shares followed by PTCL, up five paisa at Rs21.60 on 74m shares, PSO, off Rs3.80 at Rs191.35 on 32m shares, National Bank, lower 50 paisa at Rs26.05 on 24m shares, Engro Chemical off Rs3.30 at Rs71.25 on 12m shares, MCB, easy 30 paisa at Rs31.95 on 4m shares and Sui Northern Gas, lower 10 paisa at Rs18.20 also on 4m shares.

Other actives were led by KESC, easy five paisa on 7m shares, FFC-Jordan Fertilizer, off 30 paisa on 4m shares and Dewan Salman, lower 50 paisa on 3.432m shares.

FORWARD COUNTER: Massive selling in PSO featured the trading on this counter as it finished lower by Rs4.05 at Rs193.20 on 26m shares followed by Hub-Power, off 35 paisa at Rs26.60 on 17m shares and PTCL, unchanged at Rs21.70 on 8m shares.

Engro Chemical fell by Rs3.70 at Rs72.05 on 4m shares, while Sui Northern Gas, was easy by 15 paisa at Rs16.75 on 3.285m shares.

DEFAULTER COMPANIES: Trading on the counter was slow as shares of 13 companies came in for modest two-way activity under the lead of Quice Foods, easy by 10 paisa at Rs1.70 on 12,500 shares followed by Amazai Textiles and Crescent Spinning, up five paisa and lower by the same amount both at Rs1.20 on 4,500 and 4,000 shares respectively.