January 14, 2003	Tuesday	Ziqa'ad 10, 1423

KARACHI, Jan 13: Stocks on Monday partially reacted amid highly volatile fluctuations as a section of leading investors unloaded in part long positions in badla business but was well absorbed at the dips. The KSE 100-share index fell half a per cent or 15.49 points at 2,853.75.

“It is just a signal bulk of badla business sell-off is yet to come,” analysts said, adding “how would bulls react after bears reinforce their selling offers at the current higher rates would set the market direction.”

Some others predict that investors’ perceptions are still on the higher side anticipating the best is still to come possibly in the following sessions.

Opinions are, therefore, divided over the future direction of the market. Some say further reaction is overdue. Some others claim it is not correct to think that the index could take a downward course before testing the index level of 3,000.

However, external factors, notably a possible US attack on Iraq and its impact on the local markets and economy did worry investors. The steady inflow of funds from various quarters shows that it is pretty difficult for the bears to reverse the trend at least for the near-term.

“Dividend announcements from some of the leading companies, notably from the fertiliser sector, are due and they could generate additional buying for capital gains,” brokers said. Engro Chemical has crossed the barrier of Rs100 at Rs102.55 on a larger turnover of over 30,000 share at this high rate for a 10-rupee share.

After having driven the KSE 100-share index to its career-best level of 2,870 at the weekend session, the bulls were expecting a long overdue technical correction and that manifested on Monday. However, its intensity was not that damaging as has been predicted by some of the leading analysts.

It finally ended lower by 15.49 points at 2,853.75, still holding on most of hefty gains netted during the last couple of weeks, which incidentally was the day’s lowest bid. The highest touched at Rs2,895 during the mid-session trading.

Prominent gainers were led by Pak Re-Insurance Co, Javed Omer Vohra, Pakistan Oilfields, Siemens Pakistan and Shell Pakistan, up by Rs5.95 to Rs12.55 followed by Dawood Cotton, International Industries, Engro Chemical, up Rs5.05 to Rs5.70. General Tyre, HinoPak Motors and Security Papers also scored good gains.

Losers were led by Pakistan Refinery, Dawood Hercules, Nestle MilkPak, Wyeth Pakistan and Unilever Pakistan, off by Rs5 to Rs30. ICI Pakistan, PSO, Al-Ghazi Tractors, Clariant Pakistan and Fauji Fertiliser fell by Rs1.45 to Rs3.20.

Trading volume fell to 338m shares from the weekend’s 583m shares but gainers maintained a slight edge over the losers at 161 to 158, with 66 shares holding on to the last levels.

The most active list was topped by Hub-Power, off 65 paisa at Rs41.35 on 60m shares followed by Sui Northern Gas, lower 45 paisa at Rs24.20 on 36m shares, PTCL, easy also by the same amount at Rs25.60 on 35m shares, Engro Chemical, higher by Rs5.05 at Rs102.55 on 30m shares and National Bank, up 45 paisa at Rs29 on 20m shares.

Dewan Salman led the list of other actives, off Rs1.15 on 17m shares, FFC-Jordan Fertiliser, easy 20 paisa on 14m shares, PSO, off Rs2.85 on 14m shares, MCB, higher by Rs1.65 on 13m shares and ICI Pakistan, lower Rs1.60 on 12m shares.

FORWARD COUNTER: Speculative issues on the forward counters came in for strong selling and finished lower barring MCB, which was quoted further higher by Rs2.10 at Rs41.80 on 1.305m shares and Engro Chemical, up Rs4.25 at Rs102.75 on 5m shares.

But ICI Pakistan and Fauji Fertiliser came in for active selling and fell by Rs130 and Rs2.65 at Rs60.70 and Rs88.50 on modest turnover.

Among volume leaders, Hub-Power was again on the top, off 50 paisa at Rs41.80 on 11m shares followed by PTCL, easy 40 paisa at Rs25.90 on 5m shares and PSO, off Rs2.80 at Rs236 also on 5m shares.

DEFAULTER COMPANIES: Active trading was witnessed on this counter where shares of 20 companies came in for alternate bouts of buying and selling. Schon Modaraba, again attracted good support and rose by 40 paisa at Rs1.35 on 0.285m shares followed by Quice Foods, unchanged at Rs1.75 on 15,000 shares and S.S. Oils, easy by 60 paisa at Rs4.65 on 7,500 shares.

BOARD MEETINGS: Trust Leasing on Jan 14; Industrial Capital Modaraba, Quality Textiles and Guardian Modaraba on Jan 16; Grindlays Modaraba on Jan 17; Olympia Spinning on Jan 24; and Clariant Pakistan on Jan 30.