December 19, 2002	Thursday	Shawwal 14, 1423

KARACHI, Dec 18: Stocks on Wednesday turned mixed as leading investors adjusted their portfolios filling in gaps here and there apparently in a bid to resume operations beyond the 2,500 index level before the year is out. The KSE 100-share index posted a fresh fractional gain of 3.85 points at 2,501.12.

Price movements were, therefore, highly erratic as investors indulged in alternate bouts of buying and selling, shedding their extra load in a highly overbought market.

“Opinions are now divided over the future direction of the market”, brokers said “some say being an overbought position, the market could attract a lot of profit-selling at the inflated levels, while others hope continuation of the current run-up on the perception of higher dividend incomes and capital appreciation”.

Although the KSE 100-share index managed to finish above the crucial level of 2,500 at 2,501.12 but not without tasting the negative impact of an overbought market.

Owing to early massive profit-selling in most of the pivotals, it shed about 40 points at 2,460 but later short-covering by the bulls allowed it to finish slightly above the overnight close.

“The highly uneven price movements reflect that investors are unsure about the market’s ability to stay above the 2,500 points index level”, some analysts said fearing “massive fresh inflow of cash amounts needed to sustain this level and that too in a highly overbought market”.

But some others predict the cut of interest rates by two per cent on the investment bonds for all the maturities by the central bank a couple of days back could generate strong financial support alone on the perception of higher dividend yields.

Dividend yields on certain counters are certainly higher than the return on investment in bonds but investors have to weigh the financial risks involved between the two modes of investment.

“The developing political situation, notably in the backdrop of MMA’s withdrawal of support to the Jamali government tells a different story as it could mean anything to newly formed political government”, one broker fears.

It was perhaps because of these perceptions that strong profit-selling hit the market, leading losers being Millat Tractors, Tri-Pack Films, Kohinoor Weaving, Dawood Hercules and Central Insurance, off Rs2 to Rs3.90.

Other prominent losers were led by 13th ICP, Metropolitan Bank, Gadoon Textiles, Sapphire Fibre, National Refinery and Pakistan Oilfields, off Rs1.40 to Rs1.70.

Some of the leading shares managed to put on good gains owing to the shortage of floating stock. They are: Unilever Pakistan, Rafhan Maize Products, Wyeth Pakistan, Universal Leather and Grays of Cambridge, which posted gains ranging from Rs4 to Rs16.

Other good gainers included Usman Textiles, Shahtaj Sugar, Souvenir Tobacco, Pakistan Refinery, Shell Pakistan, Crescent Steel, BOC Pakistan and Mitchell’s Fruits, up by Rs1.50 to Rs4.

Trading volume was maintained on the higher side at 351m shares thanks to fresh heavy buying in Hub-Power but losers managed to force a fair lead over the gainers at 175 to 148, with 56 shares holding on to the last levels.

Hub-Power again topped the list of most actives, up by 95 paisa at Rs33.40 which incidentally was the highest for the day and lowest being Rs31.70, on 190m shares followed by Sui Northern Gas higher by 55 paisa at Rs21.35 on 29m shares, National Bank, firm by 20 paisa at Rs27.95 on 16m shares, PSO higher by 60 paisa at Rs188.45 on 15m shares and Engro Chemical, up by 70 paisa at Rs78.10 on 13m shares.

Other actives were led by Nishat Mills, lower 15 paisa on 10m shares, PTCL, off five paisa on 8m shares, Adamjee Insurance, up by 80 paisa also on 8m shares, Japan Power, higher 30 paisa on 7m shares and FFC-Jordan Fertilizer steady five paisa also on 7m shares.

FORWARD COUNTER: Hub-Power came in for renewed strong support and tended further higher by 95 paisa at Rs33.40 on 61m shares, followed by PTCL, up by 25 paisa at Rs23.45 on 36m shares and PSO, firm 35 paisa at Rs188.45 on 9m shares.

Sui Northern Gas and Engro Chemical were also traded higher by 65 and 35 paisa at Rs21.45 and 78.10 on 4m and 3m shares respectively.

DEFAULTER COMPANIES: Shares of 18 companies came in for modest trading and generally rose under the lead of Quice Foods, steady five paisa at Rs1.65 on 82,500 shares and Pangrio Sugar, also up by the same amount at Rs1.30 on 43,000 shares.

Mehran Jute and S.S. Oils rose by five and 80 paisa at Re1 and Rs4.80 on 17,000 and 14,500 shares.

DIVIDEND: Ibrahim Fibre, cash 15 per cent, Murree Brewery stock dividend at the rate of 20 per cent and Mehmood Textiles 25 per cent.