April 1, 2003	Tuesday	Muharram 28, 1424

KARACHI, March 31: Stocks on Monday took a technical breather as a section of investors indulged in profit-selling at the higher levels but analysts said it could well prove a consolidation phase rather than setting in of a correction. The KSE 100-share index shed 28.46 points at 2,715.72.

Apart from conflicting reports from the Iraq war front, reports of extension of US sanctions on Kahuta Research Labs for another two years and the Kashmore tribal clash killing over two dozen persons also worked against the underlying sentiment.

But profit-selling did not at any stage assumed an alarming proportions and was well-absorbed at the dips amid growing confidence about the market’s inherent strength and its capacity to absorb technical bear shocks. Bulk of the selling was confined to overvalued energy shares, notably PSO and Shell Pakistan, while insurance sector again performed well despite higher dividend by some of the leading shares for the year ended Dec 31,2002.

“The sanctions will not have any major negative impact on the economy but the timing was not that ideal”, analysts said “Pakistan has already gone out of way to support the US war on terrorism”.

“It appears to be a warning signal against Pakistan stance on US war effort in Iraq”, some others speculate “investors may have correctly taken the message and hastened to liquidate long positions but no matching covering purchases”.

After having risen by five per cent during the last week, the KSE 100-share index shed 28.46 points at 2,715.72 as compared to 2,744.18 at the last weekend amid light volume of 100m shares.

Some others say conflicting reports from the Iraq war front are not that encouraging to fuel the last week’s run-up as reports of “a pause” in the allied forces advance worked against the bull perceptions of the market.

“I don’t think financial institutions could pull out of the market for a long period as of late investment trends have gone a significant changes”, brokers said and “in the similar conditions as the prevailing one, there is no other attractive bait as the share business”.

Over the last couple of months the discount rate has fallen to 7.5 per cent and yield on Pakistan Investment Bonds to four per cent from the previous nine per cent and this phenomenon has limited the investment options for the big ones, they add.

However, hopes that meeting of the newly formed Privatization Commission Board on April 7, could give the final signal for PSO sell-off as scheduled for April 26 is expected to generate a lot of activity in its share and some other energy scrips.

Although minus signs dominated the list of actives, most of the leading shares managed to finish with an extended gain, major gainers among them being Javed Omer, Habib Insurance, Lakson Tobacco, Rafhan Maize, Glaxo-Wellcome and Bhanero Textiles, up by Rs2.30 to Rs8.40. Dawood Hercules, Millat Tractors, Crescent Leasing, Alico, EFU General Insurance in response to higher dividend plus bonus shares and Al-Mal Securities, up by Rs1.50.

Losers were led by PSO and Shell Pakistan, off Rs4.45 and Rs10.90 followed by Faisal Spinning, Attock Refinery, Engro Chemical and Fauji Fertilizer on reports of cut in selling prices and National Refinery, off Rs1.60 to Rs2.50.

Trading volume fell to 100m shares from the weekend 156m shares as losers forced a strong lead over the gainers at 175 to 101, with 41 shares holding on to the last levels.

Hub-Power, off 50 paisa at Rs34.25 on 21m shares followed by PTCL, easy 30 paisa at Rs24.20 on 19m shares, PSO, off Rs4.45 at Rs202.90 on 9m shares, Sui Northern Gas, lower 25 paisa at Rs24.40 on 7m shares and National Bank, off 20 paisa at Rs26.45 on 6m shares.

Other actives were led by Pak PTA, unchanged on 4m shares, FFC-Jordan Fertilizer, easy 30 paisa on 3m shares, Investic Securities, lower 35 paisa also on 3m shares, Pakistan Oilfields, higher by 45 paisa on 2.597m shares and PIA (A), off 30 paisa on 2.433m shares.

FORWARD COUNTER:PSO came in for active selling in sympathy with its counterpart in the ready section, and fell sharply by Rs5.15 at Rs198.70 on 5m shares. Engro Chemical and Fauji Fertilizer also attracted selling and fell by Rs2.40 to 2.65 at Rs83.50 and 82.15 respectively.

Hub-Power was actively traded, lower 80 paisa at Rs34.35 on 14m shares followed by PTCL, easy 40 paisa at Rs24.20 on 3m shares and Sui Northern, lower 45 paisa on 1.026m shares.

DEFAULTER COMPANIES:Shares of 11 companies came in for stray trading under the lead of Ghandhara Industries, off one rupee at Rs6.50 on 11,000 shares followed by S.S.Oils, lower 55 paisa at Rs4 on 4,500 shares and Schon Modaraba, easy 10 paisa at Rs0.65 on 4,000 shares. Others were traded modestly.

DIVIDEND:EFU Life Assurance cash 10 per cent, EFU General Insurance, cash 15 per cent, bonus shares at the rate of 11.76 per cent, Commercial Union Assurance Pakistan and Platinum Insurance, both nil for the year ended Dec 31, 2002.

BOARD MEETINGS:East-West Insurance, Metropolitan Life Assurance on April 3, Muslim Insurance on April 4, National Bank on April 7 and Professional Modaraba on April 10.