April 2, 2003	Wednesday	Muharram 29, 1424

KARACHI, April 1: Stocks on Tuesday finished with an extended fall as leading base shares came in for renewed selling at the higher levels and took the entire market along with them in the minus column for the second session in a row. The KSE index fell 9.56 points at 2,706.16.

A sharp downward revision in the petroleum prices should have generated a good bit of short-covering in the pivotals, notably the industrials on the perception of an identical cut in the cost of production, but some other negative factors weighed against the underlying sentiment.

“A massive 14.5 per cent cut in POL prices will have negative impact on the earnings of the energy shares, notably the PSO and the Shell Pakistan, and it signals good news for the others,” market sources said.

After breaching through the psychological barrier of 2,600 at one stage at 2,670, the KSE 100-share index bounced back to finish above it at 2,706.16 points, off 9.56 points.

But the PSO remained the centre of activity amid conflicting reports about its sell-off on the given date of April 26. Active short-covering in it at the decline, however, gave the needed push to the index to finish recovered from the day’s lows.

A spread of 55 points between the day’s lowest and the highest levels in the index reflects the prevailing nervousness among the investors and their unwillingness to hold long positions, analysts said.

The PTCL, which holds a weightage of 33 per cent in it at one stage fell to day’s lowest level of Rs23.50, but later support at dips allowed it to finish recovered at Rs24, enabling the index to rise from the mid-session lows. Other heavy weight also followed its lead.

Opinions are divided over the near-term direction of the market as the absence of institutional traders after the last week’s strong buying has also put hold on general support.

“The prevailing lull could well prove a prelude turning point in the direction of the market,” one broker predicts, adding “but much will depend on the course of war in Iraq.”

But some others said financial institutions would continue to play a crucial role as despite high risks the share business is now more attractive than any other mode of investment and return on it.

Leading among them seem to be taking stock of their inventories as they have been involved in the share business massively during the last weeks and had pushed the index higher by five per cent or 92 points, they said.

Minus signs again dominated the list, major losers being Nestle MilkPak, Engro Chemical, Javed Omer, Arif Habib Securities and Unilever Pakistan, off Rs2.95 to Rs26.

They were followed by Jahangir Siddiqi & Co, Gulistan Textiles, Sapphire Textiles, Pakistan Oilfields, Atlas and Exide Battery, Clariant Pakistan and some others, falling by Rs1.30 to Rs2.65.

Advancing shares were led by Wyeth Pakistan, Security Papers, Treet Corporation, Glaxo-Wellcome Pakistan and Bhanero Textiles, up Rs5 to Rs7.

Other good gainers were led by Habib Insurance, IGI, Burewala Textiles, Kohat, and Cherat Cement, PSO, Al-Ghazi Tractors, HinoPak Motors, Essa Cement and Lakson Tobacco, up by Rs1.50 to Rs4.05.

Trading volume showed a modest rise at 134m shares from the previous 100m shares as gainers trailed far behind the losers at 104 to 177, with 44 shares holding on to the last levels.

PTCL was actively traded, lower 20 paisa at Rs24 on 33m shares, Hub-Power, easy 15 paisa at Rs34.10 on 23m shares, PSO, higher by Rs2.10 at Rs205 on 21m shares, Sui Northern Gas, lower five paisa at Rs24.35 on 11m shares and Engro Chemical, off Rs4.10 at Rs79 on 6m shares.

Other actives were led by National Bank, unchanged on 4m shares, D.G. Khan Cement, up 15 paisa on also on 4m shares, FFC-Jordan Fertiliser, easy five paisa on 3.495m shares, Dewan Motors, firm by 10 paisa on 3m shares and Fauji Fertiliser, easy 20 paisa on 2m shares.

FORWARD COUNTER: The PSO came in for active speculative support ahead of April 7, meeting which will decided its sell-off possibly on April 26. It rose by Rs2.20 at Rs200.40 on 8m shares, but on the other hand Engro Chemical came in for active selling followed by some adverse reports about its sales and fell sharply by Rs4 at Rs79.50 on 2m shares.

Hub-Power was marked down by 20 paisa at Rs34.15 on 15m shares, while Sui Northern was quoted higher by five paisa at Rs24.45 on 1.444m shares.

DEFAULTER COMPANIES: Shares of over a dozen companies came in for alternate bouts of buying and selling, but price changes were mostly fractional.

Medi Glass and Mehran Jute fell by five paisa at Rs0.60 and Rs0.50 on 5,000 shares each and Pangrio Sugar, unchanged at Re1 on 4,500 shares, while all others were modestly traded.