September 4, 2003	Thursday	Rajab 6, 1424

KARACHI, Sept 3: Stocks on Wednesday took a technical breather on badla-related selling amid fears that massive increase in carryover business could create some settlement problems.

Both badla investment and volume have risen to a record Rs23bn and 445m shares, respectively, and there was a loud negative whispering about the final settlement of the outstanding dues.

The KSE 100-share index reacted to close lower by 35.71 points at 4,528.08 close to its day’s lowest bid as compared to 4,563.79 a day earlier.

“Alarm signals were blown in the KSE corridors amid rumours that mounting selling offers may be around to settle the badla business followed by steep decline in prices,” brokers said.

A crisis-like situation is developing in stock trading after the recent meteoric rise both in the KSE 100-share index and the market capitalization, which has touched the one-trillion rupee mark in the backdrop of a record rise in the badla business.

But leading analysts predict there may not be any problem as speculated and clearing will be pretty smooth as moneyed people are involved in it. There is a lot of money around to settle the outstanding business.

However, Tuesday’s factional killing in the city, which claimed the life of eight persons could take an ugly situation if the other side retaliates, they fear.

“I don’t think the bulls are tired after pushing the market to new all-time highs,” says a leading broker. “They have the reasons to stay back as some more corporate announcements, notably from Pakistan Oilfields are due by the second week of the current month.”

Meanwhile, all eyes remained focused on the board meeting of Hub-Power tomorrow amid conflicting reports about the final dividend and EPS in the backdrop of higher profit. It had already paid an interim dividend of 33 per cent and analysts predict an identical final figure.

Persistent decline in its share value during the last couple of sessions however, reflects that final may be below the market expectations. But some others said the selling is tactical to grab the floating stock at the lower rates for post-dividend capital gains.

Bulk of the selling remained confined to the current favourites, notably PSO, PTCL, ICI Pakistan, auto share, Lakson Tobacco and several others, while some secondliners, notably in the textile sector managed to finish higher amid modest trading.

Leading gainers were led by Javed Omer, up Rs45.90 in response to bonus shares at the rate of 150 per cent, followed by Wyeth Pakistan, National Refinery, Pakistan Refinery, which posted gains ranging from Rs12.15 to Rs25.

Other good gainers were led by Attock Refinery, Shafiq Textiles, Pakistan Cables, Siemens Pakistan, Aventis Pharma and Cherat Papers, up Rs7 to Rs8.45.

Prominent losers were led by Pakistan Services, Shezan International, Glaxo-SKF, Atlas Honda, Atlas Battery, Honda Atlas Car, Al-Ghazi Tractors and Pakistan oilfields, off Rs4 to Rs11.15.

Owing to larger selling trading volume rose to 606m shares from the previous 553m shares as the advancing shares managed to hold a slight edge over the losers at 197 to 194, with 45 shares holding on to the last levels.

Chakwal Cement topped the list of most actives, up Rs1.10 at Rs8.55 on 73m shares followed by Hub-Power, easy five paisa at Rs43.75 on 71m shares, PTCL off 45 paisa at Rs38.95 on 60m shares, Fauji Cement, steady 10 paisa at Rs13.20 on 38m shares and Bosicor Pakistan, sharply higher by Rs2.90 at Rs41.70 on 34m shares.

Other actives were led by Maple Leaf Cement, firm 35 paisa on 33m shares, National Bank, up 90 paisa on 32m shares, D.G. Khan Cement, lower 35 paisa on 31m shares, Dewan Motors, up Rs2.55 on 27m shares and PSO, off Rs2.70 on 18m shares.

FORWARD COUNTER: Speculative issues on the other hand came in for active selling and finished lower under the lead of PSO, off Rs2.30 at Rs288.90 on 6m shares but Hub-Power on the other hand managed to finish fractionally higher at Rs44.25 on 10m shares.

PTCL fell by 40 paisa at Rs39.15 on 9m shares, followed by FFC-Jordan Fertilizer, easy, 40 paisa at Rs18.95 on 2m shares and Sui Northern Gas, off 75 paisa at Rs46.20 also on 2m shares.

DEFAULTER COMPANIES: Easy trend was seen on this counter as prices were generally lower on stray selling. Standard Bank, which has been in strong demand over the last couple of sessions attracted profit-selling at the higher rates and fell by 75 paisa at Rs8.50 on 0.424m shares followed by Islamic Bank, off 50 paisa at Rs9.15 on 0.297m shares and Biafo Industries, lower 10 paisa at Rs9.30 on 0.250m shares.

DIVIDEND: Zulfeqar Industries, cash 10 per cent, Shahpur Textiles, right shares at the rate of 40.08 per cent.

BOARD MEETINGS: Berger Paints on Sept 8, B.F. Modaraba, Indus Motors on Sept 9, National Refinery on Sept 10 and Crescent Leasing on Sept 15.