April 4, 2003	Friday	Safar 1, 1424

KARACHI, April 3: Stocks on Thursday failed to extend the overnight run-up as investors took profits on the overvalued counters followed by reports of Indian threat of preemptive attack to stop alleged cross-border terrorism. The index shed only 0.54 points at 2,753.47.

An added to it was the US allegation of exchange of nuclear information with North Korea in exchange of missile technology but the presence of strong institutional buying at the dips did not allow the market to fall below its recently established chart point.

The general perception was, shared by all the leading analysts, that the steep decline below two per cent from the recent four per cent in the T-bills yields in Wednesday’s central bank auction will not allow the outflow of surplus funds from the share market, but the Indian threat did.

“There is a lot of money floating here and there in search of avenues that ensure quick gains, and there are not many excepting stocks,” analysts said.

However, it may well turn a short-term psychological depressant as the higher dividend yields of some of the leading stocks and an attractive bait of capital gains will again attract surplus funds back in the market, they said.

“If America could attack Iraq why not India was the message, which ripped through the already vulnerable market,” one broker said, adding “it may be a threat but well-timed.”

Fears of negative impact of Iraq war on the economy though is viewed in different contexts, investors are not inclined to take it an immediate depressant as is reflected by the credible performance during the last two weeks.

After opening higher, what the dealers, called the extension of the previous strong rally, the KSE 100-share index remained volatile throughout the session though ended fractionally down by 0.54 points at 2,753.47 as compared to 2,754.01 a day earlier.

All eyes are now focussed on the sell-off of PSO, although there is a loud whispering in the market that deadline of April 26, may not be adhered to owing to Iraq war.

Both PTCL and Hub-Power, which boosted the market sentiment in overnight trading came in for active selling and ended lower on large volumes.

Among the gainers, Sapphire Fibre, Atlas Honda, Unilever Pakistan, Nestle MilkPak and Pakistan Reinsurance Co were leading, up Rs3.50 to Rs11.70.

They were followed by Central Insurance, Javed Omer, Pakistan Reinsurance Co, Sapphire Textiles, Millat Tractors, Pakistan Services and Gillette Pakistan, which posted gains ranging from Rs1.75 to Rs3.40.

Losers were led by Shell Pakistan, Abbott Lab, New Jubilee Insurance, Faisal Spinning, Shell Pakistan, Habib Insurance, Grays Leasing, Siemens Pakistan and Wyeth Pakistan, off one rupee to Rs4.

Trading volume fell to 170m shares from the previous 278m shares but advancing shares out paced losing ones at 146 to 117, with 56 shares holding on to the last levels.

Hub-Power again topped the list of most actives, lower 60 paisa at Rs35.20 on 56m shares, PTCL, easy 25 paisa at Rs24.50 on 38m shares, PSO, up Rs1.20 at Rs207.25 on 12m shares, Sui Northern Gas, lower 15 paisa at Rs24.60 on 9m shares and Nishat Mills, up Rs1.50 at Rs18.65 also 9m shares.

Other actives were led by National Bank, unchanged on 7m shares, Dewan Motors, up 40 paisa also on 7m shares, ICI Pakistan, higher 80 paisa on 5m shares, Engro Chemical, up 65 paisa on 3m shares and MCB, firm 10 paisa on 2.m shares.

FORWARD COUNTER: Hub-Power came in for active selling at the higher level and was marked down by 60 paisa at Rs35.25 on 19m shares followed by PTCL, easy 20 paisa at Rs24.50 on 6m shares, and PSO, higher by 70 paisa at Rs202.50.

Sui Northern Gas, fell 15 paisa at Rs24.60 on 1.236m shares, but Engro Chemical resisted fresh decline on modest short-covering and rose 70 paisa at Rs79.40 on a million shares and so did Nishat Mills, up Rs1.50 at Rs18.55 on modest turnover.

DEFAULTER COMPANIES: Suzuki Motorcycles again came in for active support at the overnight level of Rs8 and accounted for 27,500 shares followed by Automotive Battery, off 40 paisa at Rs7.60 on 8,000 shares and Ghandhara Industries, firm five pasia at Rs6.05 on 7,000 shares. All others were modestly traded.