February 8, 2003	Saturday	Zul Hijjah 6,1423

KARACHI, Feb 7: Stocks on Friday showed mixed trend as weekend profit-selling clipped the earlier gains on the blue chip counters but larger decline was averted thanks to presence of support at the dips. The KSE index shed 1.69 points at 2,481.44.

The blue chip-inspired rally, however, allowed the broader market to hold on to most of the initial gains netted by them, which in turn reflects that bears are not that aggressive now and did not indulge in larger selling.

Apart from Hub-Power’s expected interim dividend the other positive news, which investors are awaiting is the outcome of PSO’s pre-bid meeting by end of the current month.

Hub-Power’s interim profit of Rs2.880bn for the half year ended Dec 31, 2002 was well-received in the market as investors covered positions in it on the perception that interim dividend could be much higher than widely speculated.

The Hub-Power board meeting will be held in the first week of March and indications are that a good dividend may be announced after the approval of its donors.

“I think Hub-Power interim payout could be around 40 per cent based on its earning capacity and annual after-tax profits,” one broker predicts but says its share, which had recently touched the high mark of Rs42 in January boom conditions may not jump beyond this level.

It was perhaps the last working result for the current fiscal, which could generate a lot of buying as did other mega issues, notably Fauji Fertilizer, Engro Chemical, Shell Pakistan and some others.

Most of them were massively traded in their pre-board meetings, setting new daily volume records and pushing the KSE index to all-time peak level of 2,954 and the market capitalization to Rs.647 billion.

“There may not be blank sessions in future stock trading but the market will certainly lack fresh stimulants,” analysts said and “fears of Iraq war could further accentuate the situation.”

The KSE 100-share index after rising by about 20 points aided by strong buying in Hub-Power and some other pivotals, finally ended fractionally down 1.69 points at 2,481.44.

Opinions are divided over the future direction of the market but all are united that there is no possibility of a sustainable recovery before the Eid holidays next week. With the long weekend ahead, closing from next Wednesday to next Monday, the market will not allow investors to take undue risks, analysts said.

Plus signs dominated the list under the lead of Gillette Pakistan, Pakistan Refinery, Shell Pakistan, Dawood Hercules, which rose by Rs3 to Rs5.50 but largest gain of Rs20.55 was noted in Siemen’s Pakistan.

Other prominent gainers were led by Alico, Gadoon Textiles, Cherat Papers, Ghani Glass, Unilever Pakistan, Mari Gas and many others, up by Rs.1.65 to Rs4.

Losers on the other hand were mostly fractional and reflected lack of support rather than large selling. Clover Pakistan, Fateh Industries, Dawood Cotton, Pakistan Oilfields, Abbott Lab, Attock Refinery, BOC Pakistan fell by one rupee to Rs3.75, the biggest fall of Rs19 was recorded in Wyeth Pakistan.

Trading volume showed a modest rise at 155m shares from the previous 148m shares but gainers held a strong lead over the losers at 151 to 87, with 39 shares holding on to the last levels.

Hub-Power again topped the list of actives, off 45 paisa on post-result selling at Rs34.70 on 40m shares followed by PTCL, lower 20 paisa at Rs21.75 on 24m shares, FFC-Jordan fertilizer, easy 45 paisa at Rs11.35 on 18m shares, PSO, up 10 paisa at Rs183.60 on 13m shares, and Sui Northern Gas, firm by five paisa at Rs21.70 on 12m shares.

Other actives were led by Pak PTA, up 15 paisa on 8m shares, MCB, lower 30 paisa on 6m shares, National Bank, easy five paisa on 5m shares, ICI pakistan, higher by 30 paisa on 4m shares and Engro Chemical, up 25 paisa on 3m shares.

FORWARD COUNTER: Hub-Power came in for active selling and fell by 25 paisa at Rs34.90 on 13m shares followed by PSO, up 45 paisa at Rs184.70 on 5m shares, Sui Northern Gas, higher 50 paisa at Rs21,90 on 3m shares, PTCL, off 20 paisa at Rs21.85 also on 3m shares and FFC-Jordan Fertilizer, off 35 paisa at Rs11.55 on 2m shares.

DEFAULTER COMPANIES: Metropolitan Steel attracted good support at the previous level and turned out total volume of 55,500 shares at Rs14.50. Bela Automotive followed it up five paisa at Rs1.65 on 8,500 shares and Crescent Spinning, firm by 10 paisa at Rs3 on 10,000 shares. Others were modestly traded.