February 20, 2003	Thursday	Zul Hijjah 18, 1423

KARACHI, Feb 19: Stocks on Wednesday failed to extend the previous run-up as active selling in PSO followed by some negative reports from the pre-bid meeting about its sell-off triggered sympathetic unloading on the other blue chip counters, pushing the broader market in the minus territory.

The opening was, however, fairly encouraging on active follow-up support coming from the leading financial institutions as the KSE 100-share index early maintained its upward drive. But the mid-session negative rumours about the PSO circulated apparently by bears halted the market’s upward drive owing to a spate of sellstops.

The KSE 100-share index finished lower by 46.65 points at 2,500.49 as compared to 2,547.14 a day earlier as all the base shares including PTCL and Hub-Power came in for active selling in sympathy with PSO, which received heavy battering.

The Privatisation Commission officials and the members of the three short-listed strategic buyers on Wednesday were in session to fix the final date of bid as the government has earlier indicated to clear the PSO liabilities before March 31.

But the mid-session negative rumours leaking possibly from the meeting about the fixation of final bid date triggered snap selling in PSO, which spread to all other blue chip counters like a wild fire and halted the market’s last two sessions run-up.

Among the three short-listed bidders, Kuwait Petroleum and Midrock of Saudi Arabia are from the Middle East and Fauji Foundation is a local contender. The government intends to sell 51 per cent controlling shares of PSO, which holds 70 per cent of the local market share of petroleum products.

Although official announcements about the outcome of pre-bid meeting was not announced till the closing bell, some of the bargain-hunters managed to tilt the price balance in their favour.

“I don’t think the pre-bid meeting may not be able to resolve the financial issues involved in a smooth transaction,” says a leading stock analyst. “The government is out to unload its stake in the state-owned units as early as possible.”

Moreover, no one among the bidders will take a risk of losing an earning concern, having a protected market irrespective of the financial risks, he says.

Despite higher opening, all eyes remained focussed on proceeding leading to the sell-off of the oil giant. Some brokers said the selling was tactical rather than real as bidders were manoeuvring the prices through their agents.

Minus signs dominated the list under the lead of PSO, which was marked lower by Rs7.75 followed by Pakistan Oilfields, BOC Pakistan, Nestle Milkpak and 4th ICP Mutual Fund, lower by Rs2 to Rs3.65.

All was, however, not bad with the broader market as some of the leading shares managed to finish higher, major gainers among them being Colgate Pakistan, Lakson Tobacco, Wyeth Pakistan, Treet Corporation and Pakistan Reinsurance Co, higher by Rs3.20 to Rs9.95.

Trading volume fell to 125m shares from the previous 283m shares as leading investors kept to the sidelines rather than indulging in hasty selling. Losers held a fair lead over the gainers at 145 to 84, with 40 shares holding on to the last levels.

Hub-Power was actively traded, off 85 paisa at Rs34.80 on 35m shares, followed by PSO, sharply lower by Rs7.75 at Rs184 on 23m shares, PTCL, off 80 paisa at Rs21.25 on 13m shares, Pak PTA, lower 60 paisa at Rs8.20 on 12m shares and National Bank, easy five paisa at Rs26.30 on 6m shares.

Other actives were led by Sui Northern Gas, of 45 paisa on 6m shares, ICI Pakistan, lower Rs1.20 on 4m shares, Engro Chemical, easy 25 paisa also on 4m shares, FFC-Jordan Fertilizer, off 45 paisa on 3.780m shares and Pakistan Oilfields, Rs3.65 on 2m shares.

FORWARD COUNTER: Heavy selling in PSO, which fell by Rs8.40 at Rs183.60 on 11m shares led the other speculative issues to the minus column. Hub-Power also came in for active selling and fell by 80 paisa at Rs35 on 12m shares PTCL, easy 85 paisa at Rs21.15 on 4m shares.

Other prominent losers included Sui Northern Gas and ICI Pakistan, off Rs1.15 each at Rs22.35 and Rs49. Fauji Fertilizer was, however, an exception, which rose by Rs1.10 at Rs75.90 on modest turnover.

DEFAULTER COMPANIES: Activity on this counter was relatively slow where shares of seven companies came in for trading. Schon Modaraba was leading among them, easy five paisa at Rs0.65 on 20,500 shares, Quice Foods, up 15 paisa at Rs1.35 on 2,000 shares and Suzuki Motorcycles, unchanged at Rs8 on 1,500 shares.

BOARD MEETINGS: Pakistan House International, Faysal Bank, Mehran Modaraba, Habib Modaraba,Fecto Cement,General Leasing Modaraba,on Feb 20,Spencer & Co, Reckitt and Benckiser Pakistan,Pakistan Venture Capital,Atlas Honda,on Feb 21,Pakistan Engineering and Dawood Leasing on Feb 22.