October 16, 2003	Thursday	Sha'aban 19, 1424

KARACHI, Oct 15: Stocks on Wednesday resisted fresh decline as investors covered positions on the blue chip counters but the underlying sentiment appears to be a bit shaky as the run-up lacked aggressiveness associated with a bull-run.

The KSE 100-share index finished above the crucial barrier of 4,000 at 4,015.16, up 67.73 per cent or 1.72 per cent, adding about Rs12bn to the market capital at Rs974.659bn. All the leading base shares ended recovered under the lead of PSO and Hub-Power.

Bulk of the support originating from the financial institutions was confined to some of the pivotals including leading base shares, while retailers remained conspicuous by their absence apparently awaiting further developments on the corporate front.

“Speculative forces are judiciously exploiting the PSO sell-off issue,” one broker jokingly said. “They push the market down on the news of delay in its bidding date and push down it after fixing the final bidding date.”

PSO rose by Rs10.45 and so did market in sympathy but what next is pretty difficult to predict, he said.

“The close of National Bank share offer for three days signals that investors are back in the market to resume normal trading activity,” brokers said adding “the buying interest, however, remained confined to selected shares.”

“I don’t see the market’s current correction phase is overdone,” the question being debated whether or not the index should stay above the crucial barrier of 4,000 or should be allowed to find its realistic level.”

There could be two opinions about the market’s sustained rise to the all-time peak level of its career at 4,604. Some at that claim it was a speculative rise not backed by the objective economic conditions. Some other said it liquidity-driven run-up supported by higher dividend announcements, ensuring fair return on investment and lower interest rates.

The next couple of weeks will demonstrate who is right as the political standoff is there but most of the upcoming company dividend may not be that attractive to support speculative rally.

Analysts said investors are now hoping some positive announcements from the Fauji Fertilizer, Hub Power and some other leading companies whose board meetings are due before the end of the current month.

Prominent gainers were led by Parke-Davis, which spurted by Rs69 ahead of its board meeting as well as because of shortage of floating stock. Other good gainers included Fauji Fertilizer, Engro Chemical, ICI Pakistan, BOC Pakistan, Reckitt and Benckiser, Tri-Pack Films, Rafhan Bestfood, Ghani Glass, BOC Pakistan, Shell Pakistan, Gatron Industries and Dawood Hercules, which posted gains ranging from Rs2.25 to Rs6.50.

Losers were led by Javed Omer, off Rs19.95, followed by Treet Corporation, Security Papers, Ferozsons Lab, Millat Tractors, National Refinery, Bhanero Textiles, Lakson Tobacco, and Packages, off Rs3 to Rs7.50.

Trading showed a modest rise at 213m shares from the previous 177m shares but losers maintained a slight edge over the gainers at 139 to 134, with 43 shares holding on to the last levels.

Hub-Power topped the list of actives, up Rs1.05 at Rs35.80 on 30m shares followed by Japan Power, off 80 paisa at Rs5.15 on 29m shares, PSO, up Rs10.45 at Rs283.50 on 25m shares, FFC-Jordan Fertilizer, higher by 65 paisa at Rs16.35 on 18m shares and Maple Leaf Cement, up Rs1.20 at Rs25.85 also on 18m shares.

Other actives were led by Dewan Salman, easy five paisa on 9m shares, National Bank, up 65 paisa on 6m shares, Fauji Cement, steady by 20 paisa also on 6m shares, Sui Northern Gas, up 85 paisa on 6m shares and Pak PTA, higher by 35 paisa on 5m shares.

FORWARD COUNTER: Strong short-covering in PSO featured the trading on this counter where other current favourites also rose from the recent lows. PSO recovered Rs9.90 at Rs284 on 12m shares followed by Hub-Power, higher by Rs1.05 at Rs35.85 on 9m shares, PTCL, up 60 paisa at Rs34.05 on 5m shares, FFC-Jordan Fertilizer, higher by 65 paisa at Rs16.50 on 2m shares and Pak PTA, up 40 paisa at Rs11.80 on 1m shares.

Among the other prominent gainers, MCB, Engro Chemical, Fauji Fertilizer and ICI Pakistan were leading, which posted gains ranging from Rs1.15 to 2.60, the largest rise being in ICI Pakistan.

DEFAULTER COMPANIES: Trading activity on this counter remained slow in the absence of strong demand from any quarter. Prices showed fractional either-way changes. There was no large turnover in any of the shares.

BOARD MEETINGS: Searle Pakistan, on Oct 16, Indus Motors Company on Oct 17, Pak Leather Crafts, on Oct 18, Kohinoor Genertek, Habib Arkady, on Oct 20, Grays of Cambridge, Pak PTA, Nestle MilkPak, Pakistan Refinery, Central Insurance, Dilon, Lawrence Woollen on Oct 21, Haroon Oil, Pakistan Reinsurance, Fauji Cement, on Oct 22, KSB Pumps, International Industries, on Oct 23, Rafhan Bestfoods, on Oct 24, Askari Leasing, Union Bank, on Oct 28, Pakistan Telecommunication Company on Oct 29, and Pakistan Cables, on Oct 30.