April 10, 2003	Thursday	Safar 7, 1424

KARACHI, April 9: Stocks on Wednesday showed a mixed trend as investors played on both sides of the fence indulging in alternate bouts of buying and selling amid an actively traded session. The Index fell 6.75 points at 2,846.09.

The reports from the privatization front are encouraging but investors are divided on the outcome of Iraq war and are treading cautiously apparently awaiting happy end. The relative slowdown reflected that the market is passing through a consolidation phase.

Leading investors seem to have taken a technical pause to have an overview of their inventories before launching a renewed thrust to attain the pre-reaction index level of 2,900 points.

It was a slight portfolio adjustments here and there, brokers said, adding as far as the underlying sentiment is concerned it demonstrates no signs that the current run-up is overdone.

After early rising modestly, the KSE 100-share index finished with a modest fall of 6.75 points at 2,846.09 as compared to 2,852.85 a day earlier as some of the leading base shares ran into profit-selling.

“The PSO-driven rally is still to go a long way, but investors have decided not to go for a big kill as the sell-off date of April 26, is still far off,” brokers said.

Leading institutional investors also took a technical breather after having cashed in on the allied victories in Iraq and its imminent end. The recent slowdown in fighting in the battle for Baghdad also allowed a good bit of profit-taking at the inflated levels.

The local market may or may not follow the upbeat mood in the US and the Asian stock markets as apart from the Iraq war and predictions of a positive end may not necessarily be a major morale booster here.

“But the market is certain to react positively to the news of privatization of some major energy units, including PSO, as well as forthcoming corporate announcements from some leading companies,” analysts said.

A cash dividend of 12.5 per cent plus bonus shares of 10 per cent by the National Bank of Pakistan received a mixed response in the market, although it reflects a steady growth. The EPS at Rs6.04 per share of Rs10 is considered a fair return for the investors on their investment, brokers said.

Much of the profit-selling remained confined to overvalued shares, notably in the energy sector followed by some leading MNCs and fertiliser shares, notably PSO, Gillette Pakistan, New Jubilee Insurance, Unilever Pakistan, National Refinery, Clariant Pakistan, Reckitt and Benskiser, Crescent Steel and Wyeth Pakistan, off one rupee to Rs9.

Some of the leading shares, however, maintained their upward drive on renewed support and rose by Rs3.50 to Rs6, leading among them being Attock Refinery, Al-Ghazi Tractors, Security Papers, Gatron Industries and HinoPak Motors.

Other good gainers were led by ICP-SEMF, Jahangir Siddiqui & Co, Faysal Bank, Habib Insurance, IGI Insurance, Noon Sugar, Shell Pakistan, Cherat Papers, Bata Pakistan and several other, up Rs1.50 to Rs3.05.

Trading volume shrank to 233m shares from the previous 285 shares but gainers maintained a fair lead over the losers at 166 to 131, with 42 shares holding on to the last levels.

Hub-Power led the list of actives, off 65 paisa at Rs35.40 on 44m shares followed by FFC-Jordan Fertiliser, higher 40 paisa at Rs12.05 on 36m shares, PSO, off Rs2.50 at Rs218.50 on 28m shares, PTCL, lower 35 paisa at Rs24.65 on 16m shares and Sui Northern Gas, easy 20 paisa at Rs25.30 also on 16m shares.

Other actives included Bosicor Pakistan, up 85 paisa on 10m shares, ICP-SEMF, higher Rs1.70 on 9m shares, D.G. Khan Cement, steady five paisa on 8m shares, National Bank easy 10 paisa on 7m shares and Pakistan Oilfields lower 10 paisa on 5m shares.

FORWARD COUNTER: Hub-Power came in for active selling at the higher level and fell by 50 paisa at Rs35.55 on 15m shares followed by PSO, off Rs214.50 on 9m shares, and PTCL, easy 40 paisa at Rs24.70 on 4m shares.

FFC-Jordan and Sui Northern Gas followed them, up 30 and down 25 paisa at Rs12.05 and Rs25.35, respectively, on 4m and 3m shares.

DEFAULTER COMPANIES: Shares of over a dozen companies attracted alternate bouts of buying and selling under the lead of Suzuki Motorcycles, which posted a fresh good gains of Rs1.50 at Rs12.50 on 0.308m shares.

Other actives included Schon Modaraba, steady five paisa at Rs0.65 on 11,000 shares and Metropolitan Steel, off one rupee at Rs11.50 on 7,500 shares.

DIVIDEND: PIAC, Crescent Star Insurance, Asia Insurance, Universal Insurance, National Security Insurance, and Platinum Insurance, all nil for the year ended Dec 31,2003.

BOARD MEETINGS: Mitchell’s Fruit Farms on April 11; First Imrooz Modaraba, Shifa International and Syed Match on April 14; PICIC Commercial Bank, Security Leasing Corporation and Polypropylene Products on April 15; and Unilever Pakistan on April 23.