February 21, 2003	Friday	Zul Hijjah 19, 1423

KARACHI, Feb 20: The reports of air crash killing PAF air chief and some other top officials halted the PSO-led rally on the stock market on Thursday as investors hastened to cash in on the available margin of profits fearing panic selling from weakholders.

After opening higher, the KSE 100-share index plunged by 40 point below 2,460 when the reports of the crash reached the market as everyone tried to get out of the market amid a near-panic conditions. The market should have staged a robust rally led by PSO after the fixation of its sell-off date but news of air crash reversed the trend.

The Thursday’s air crash, second biggest after the 1988 air crash in which the then president Gen. Ziaul Haq and 29 other top army generals, officers and the US envoy were killed created panic-like situation in the market halting the rebound.

“We were planning for a big hunt on selected counters when the news of the crash was flashed,” says broker. “But the panic that followed altogether changed the buying perceptions.”

An idea of the consequent panic may well be had from the fact that the KSE index fell as low as 2,460 after the news before bouncing back on active short-covering in PSO, Engro Chemical and Hub-Power.

There were discussions on the incident rather than stock trading as shocking news disturbed the buying tempo of leading bulls, brokers said adding “the PSO sell-off deadline, therefore, went unnoticed.”

After earlier sharp rise, the KSE 100-share index finally ended with a modest rise of 8.59 points at 2,509.08 points but analysts predict the fixation of PSO disinvestment date on April 26, could generate a lot of covering purchases in most of the pivotals under its lead.

Having to its credit record cash dividend and bonus shares above 100 per cent and market share of 70 per cent, the oil giant is considered one of the market leaders and trend-setters. It rose by Rs3.50 at Rs187.50 in response to the announcement.

Some analysts fear the sell-off date may not be maintained as the three bidders could seek further clarifications about the financial issues and their clearance but the officials are inclined to get through the deal to end the prevailing uncertainty.

Buying interest even from the shorts remained at a low ebb as no one was inclined to go beyond certain limits apparently awaiting fresh news on the air crash front, they said.

However, all was not bad with the broader market as some of the leading shares managed to post modest to good gains under the lead of Engro Chemical, Pakistan Oilfields, Cherat Papers and Dawood Hercules, up by Rs2.35 to Rs4.60. Other good gainers included Usman textiles, Shell Pakistan, Attock Refinery, Prime Bank, Reckitt and Benckiser and Pakistan Commercial Leasing, up by one rupee to Rs2.

Prominent losers were led by International Industries, Lakson Tobacco, Pakistan Reinsurance Co, Pakistan Refinery and Unilever Pakistan, off by Rs2.50 to Rs5 followed by Javed Omer, Gadoon Textiles, National Refinery, Shell Gas, Millat Tractors, BOC Pakistan, Sitara Chemicals and Nestle MilkPak, which suffered fall ranging from Rs1.80 to Rs2.50.

Trading volume remained light in the absence of strong buying from any of the quarters totalling 130m shares as compared to 125m shares a day earlier. Losers topped gainers by 151 to 92 with 36 shares holding on to the last levels.

Hub-Power again led the list of actives, up 70 paisa at Rs35.50 on 49m shares followed by PSO, higher Rs3.50 at Rs187.50 on 22m shares, PTCL, steady by 10 paisa at Rs21.35 on 11m shares, Pak PTA, up 15 paisa at Rs8.35 on 7m shares and Engro Chemical, higher by Rs2.35 at Rs87.85 also on 7m shares.

Other actives included Sui Northern Gas, off 20 paisa on 5m shares, National Bank, up 35 paisa on 4m shares, FFC-Jordan Fertilizer, firm by 15 paisa also on 4m shares, Pakistan Oilfields higher by Rs2.85 on 3m shares and ICI Pakistan, steady by 10 paisa also on 3m shares.

FORWARD COUNTER: Hub-Power again came in for active support and rose 55 paisa at Rs35.55 on 15m shares followed by PSO, sharply higher by Rs3.45 at Rs187.05 on 9m shares and PTCL up 15 paisa at Rs21.40 on 3m shares.

Sui Northern Gas fell by 65 at Rs21.70 on 1.209m shares, while Engro Chemical rose by Rs2.55 at Rs89.95 on 1.135m shares. Fauji Fertilizer also rose by one rupee at Rs76.90 but MCB came in for active selling and fell sharply to Rs30.39, off Rs3.86.

DEFAULTER COMPANIES: Shares of over a dozen companies came in for trading under the lead of Ghandhara Industries, which quoted unchanged at Rs3.50 on 11,000 shares. Other actives were led by Allied Motors and Suzuki Motorcycles, easy 10 and 20 paisa at Rs9.50 and Rs7.80 on 7,000 and 2,000 shares respectively. Quice Foods also fell by 10 paisa at Rs1.25 on 2,000 shares.

DIVIDEND: Faysal Bank, cash 17 per cent for the financial year ended Dec 31, 2002.