May 13, 2003	Tuesday	Rabi-ul-Awwal 10, 1424

KARACHI, May 12: Share values on the Karachi Stock Exchange on Monday remained unsettled as investors were not inclined to take new positions on any of the counters and indulged in alternate bouts of buying and selling.

The presence of support, notably on the selected counters at the dips, however, did not allow the market to fall below its recently established higher levels, although it needs fresh inflow of fund money to sustain them. Heavy selling in the energy sector also weighed against the underlying sentiment.

The market’s highly erratic performance is well-reflected in the either-way of the KSE 100-share index, which touched the day’s peak level at 2,994.96 and the lowest at 2,958.01 before ending around 2,973.31, fractionally higher 0.89 point over the day.

The total market capitalization equalled its previous all-time high figure at above Rs654bn despite the relative weakness of the heavily-capitalized issues, reflecting the investor focus on some second-liners, notably textile shares followed by reports of higher earnings.

“I feel bears have overwhelmed the bulls never allowing them to test the crucial and widely speculated index level of 3,000 despite latter’s more than one abortive bids including the today’s,” says an analyst. “Bulls may need a solid morale-booster both in the form of political or corporate to outwit them and to restore their financial credibility.”

All eyes are now, therefore, focused on the return of the prodigal son in the form of strong financial support, which is capable of performing miracles as it has been doing since January this year. The all-time higher levels already hit by both the index and the market capitalization at 2,995 and Rs654bn respectively owe too much to it, he adds.

After having digested all the good news both on the political and the corporate fronts, the market seems to be taking a breather before its upward march to its next target, floor brokers adding “opinions are, however, divided its future course of action.”

The apparent winding down of big corporate announcements, unsettled local political issues and conditional talk offer by India in response to Pakistani peace overtures seem to have taken steam out of the market at least for the near-term.

“What seems to have sent shock waves among the investors was the threat of march to Islamabad by a political alliance if talks on LFO fail and its consequent implications for the investing public,” analysts said.

The steep decline in the traded volume showed that investors have taken the threat as a negative market factor and may think twice before going all out for the shares of their choice.

Prominent gainers were led by Siemens Pakistan and Treet Corporation up by Rs11, while losers were led by Wyeth Pakistan and Grays of Cambridge, off Rs10 and Rs13.25.

Traded volume fell to 163m from the previous 205m shares as losing shares managed to force a comfortable edge over the advancing ones thanks to stray selling in the blue chips and undervalued shares. The final count being 182 to 168, with 59 shares holding on to the last levels.

Sui Northern Gas topped the list of most actives, sharply higher by Rs1.95 at Rs31.45 on 46m shares, followed by PTCL, easy five paisa at Rs25.35 on 20m shares, Hub-Power, off 35 paisa at Rs34.80 on 14m shares, D.G. Khan Cement, firm by 10 paisa at Rs16.55 on 8m shares and Sui Southern Gas, higher 35 paisa at Rs19.60 on 7m shares.

Other actives were led by PSO, lower Rs1.40 on 7m shares, Southern Electric up 30 paisa on 6m shares, Dewan Motors, up 10 paisa also on 6m shares, KESC, lower 15 paisa also on 5m shares and Lucky Cement, up 20 paisa also on 5m shares.

FORWARD COUNTER: Sui Northern Gas also topped the list of active speculative issues and rose sharply higher by Rs1.95 at Rs31.45 on 13m shares followed by Hub-Power, off 25 paisa at Rs34.85 on 7m shares, PTCL, unchanged at Rs25.45 on 5m shares, PSO, off Rs1.45 at Rs208.95 also on 5m shares and FFC-Jordan Fertilizer, lower 20 paisa at Rs11.45 on 0.641m shares.

DEFAULTER COMPANIES: Barring Maqbool Company, which showed a good gain of Rs2 at Rs28.85, without any deal, other leading on this counter came in for active selling in the backdrop of persistent rise during last couple of sessions.

Quice Foods again topped the list of actives, unchanged at Rs1.70 on 93,500 shares followed by Medi-Glass, lower 35 paisa at Rs2.05 on 86,500 shares and Mukhtar Textiles, unchanged at Rs2 on 32,000 shares.

BOARD MEETINGS: Fazal Textiles, Ideal Spinning, Quality Textiles and Faran Sugar Mills on May 14, Usman Textiles on May 16.