October 10, 2003	Friday	Sha’aban 13, 1424

KARACHI, Oct 9: Stocks on Thursday maintained bearish outlook as leading investors did not take fresh positions at the lower levels amid fears of law and order situation. The KSE 100-share index fell further by 56.20 points eroding Rs.13bn from the market capital.

The negative fallout of the assassination of Azam Tariq continued to take its toll in the form of low trading volume as leading investors and bargain- hunters have curtailed their daily operations fearing further price erosions.

But what more disturbing was the absence of leading investors leaving the market at the mercy of retailers and some jobbers who mostly played on both sides of the fence.

After turning in again highly erratic movements until mid-session, up 33 points and down 37 points, the KSE 100-share index finally finished with an extended sharp decline of 56.20 points at 4,130.64 as compared to 4,186.84 a day earlier.

The market decline was led by the overvalued shares on all the counters, major losers among them being energy and auto shares, which fell in unison on persistent selling but no matching buying from any quarter.

Analysts said the market needs fresh investment, notably from the financial institutions but it is not coming in a desired measure and retailers are following suit.

“I don’t think investors, both individuals or big ones, are preparing themselves to line funds for the new offerings from the National Bank and the Oil and Gas Development Corporation (OGDC),” another said. “What is important is that there is no will to stay in the market.”

National Bank of Pakistan and OGDC are offering 3.2 per cent and 2.5 per cent shares at Rs46 and Rs32 per share on Oct 13 and 28 respectively, while PSO sell-off is also on the card.

Analysts are worried over the sudden sluggishness, which has gripped the hereto robust market but failed to pinpoint specific reasons behind the fading buying interest.

The interesting feature is that both the bulls and bears are maintaining a status apparently under an unwritten code of ethics for reasons best known to them.

Among the top shares Hub-Power performed well on reports that its directors have approved the setting up of gas-fired power station near Karachi, having a generation capacity of 300mw. Banking, energy, telecom, fertilizer and cement shares remained under pressure and fell sharply lower.

Minus signs dominated list under the lead of Gatron Industries, Ferozsons Lab, Grays of Cambridge, Treet Corporation and Javed Omer, off Rs7.40 to Rs24.05.

Other notable losers were led by National Refinery, Pakistan Oilfields, Pakistan Refinery, PSO, Reckitt Benckiser, Clover Pakistan, Pak-Suzuki Motors, off Rs4.50 to Rs7.05.

Some of the leading shares managed to posted good gains on modest support notable among them being Murree Brewery, PICIC, Shadman Cotton, Atlas Honda, Dawood Hercules, Yousuf Textiles, Millat Tractors and Unilever Pakistan, which posted gains ranging from Rs2 to Rs23.

Traded volume fell to 240m shares from the previous 347m shares as losers forced a strong lead over the gainers at 239 to 64, with 34 shares holding on to the last levels.

The most active list was topped by Hub-Power, higher by 50 paisa at Rs36.60 on 41m shares followed by PTCL off 50 paisa at Rs37.45 on 28m shares, PSO, lower Rs4.50 at Rs288.50 on 26m shares, D.G. Khan Cement, off Rs2.20 at Rs42.45 on 22m shares and Japan Power, easy 15 paisa at Rs8.95 on 13m shares.

Other actives were led by Fauji Cement, lower 65 paisa on 11m shares, Dewan Salman, firm by five paisa on 10m shares, National Bank, off Rs1.05 on 8m shares, FFC-Jordan Fertilizer, easy 35 paisa on 7m shares and Pakistan PTA, off 55 paisa also on 7m shares.

FORWARD COUNTER: PSO came in for renewed selling and was marked further down by Rs5.65 at Rs288.35 on 14m shares followed by Hub-Power, higher by 50 paisa at Rs36.90 on 11m shares, PTCL, off 45 paisa at Rs37.45 on 5m shares, Dewan Salman, up 15 paisa at Rs17.50 on 2m shares and Pak PTA, lower 40 paisa at Rs12.80 also on 2m shares.

DEFAULTER COS: Easier conditions were also seen on this counter where investors unloaded their long positions. Price changes were fractional but covered the entire list.

Unity Modaraba, fell by five paisa at Rs2.25 on 0.131m shares followed by Standard Bank, unchanged at Rs6 on 0.142m shares.

DIVIDEND: Saudi Pak Leasing, cash 7.5 per cent, Fidelity Leasing Modaraba, 11.5 per cent, Capital Mutual Fund, right shares at the rate of 100 per cent, Climax Engineering, Shafi Chemicals and Chakwal Cement, all nil for the year ended June 30,2003.

BOARD MEETINGS: Century Papers Mills, on Oct 14, Imrooz Modaraba, on Oct 15, Park-Davis & Co and Unilever Pakistan, on oct 23, and Bata Pakistan on

Oct 27.