October 17, 2003	Friday	Sha'aban 20, 1424

KARACHI, Oct 16: Stocks on Thursday again finished with fractional rise as follow-up support both from the financial institutions and retailers turned shy in the absence of positive news from the corporate front. The KSE index showed a fractional gain of 0.78 point at 4,015.94.

The price changes were, however, fractional and reflected that both bulls and bears are maintaining a status quo awaiting the return of leading institutional traders.

The market decline was led by the energy sector despite an increase in the petroleum prices, and fell sharply under the lead of leading oil marketing giants, PSO and Shell Pakistan, off Rs14.10 and Rs5.50 respectively.

But on the other hand auto shares posted good gains on reports of higher sales, and rose sharply higher under the lead of Honda Atlas, Indus Motors and Al-Ghazi Tractors, up Rs4.95 to Rs8.75.

After moving either-way within the range of 40 points amid alternate bouts of buying and selling, the KSE 100-share index finally ended with a fractional rise of 0.78 point at 4,015.94 as compared to 4,015.16 a day earlier.

“What ails the hereto robust market is not that tricky a question to fathom,” says a broker commenting on its current terribly nervous and directionless behaviour. “Investors enter and exit within no time spreading scare among the genuine investors and retailers.”

The Wednesday’s rejection of T-bill offers by the central bank signals that it wants to keep interest rates stable at the current level and won’t allow further increase in them at least for the near-term, he said. “Investors should have been buoyed by its move aiming at cheaper credit lines for the share business.”

But investors seem to be operating apparently with some reservations about the future outlook in the backdrop of political standoff on LFO and its possible negative fall-out on the stock trading.

“Everyone is looking toward the financial institutions to lead them in market, which has suddenly turned sluggishness after having set new records both in terms of index level and market capital,” analysts said.

Heavy cash amounts are floating like any things but they are not being reploughed in the share business for no apparent bearish reason. Lower rates which most of the leading shares and second-liners had reached are now termed an attractive bait for any future gainful investment.

The increase in petroleum prices, and some upcoming board meetings should have lured investors back in the market but there are no indications of their return.

Prominent gainers were led by Pakistan Oilfields, Pakistan Services, Fazal Textiles and Javed Omer, which posted gains ranging from Rs5.85 to Rs20 followed by Crescent Leasing, Metropolitan Bank, Attock Refinery, Ismail Industries, General Tyre and Otsuka Pakistan, up Rs1.50 to Rs2.20.

Losers were led by Millat

Tractors, HinoPak Motors, National Refinery, Lakson Tobacco, Clover Pakistan, Shell Pakistan, Grays of Cambridge and PSO, which suffered fall ranging from Rs4 to Rs14.10. Mari Gas, Sapphire Textiles, Aventis Pharma Century Papers fell by Rs2 to Rs3.95.

The traded volume remained light at 218m shares as compared to 213m shares a day earlier but losers maintained a modest lead over the gainers at 140 to 137, with 33 shares holding on to the last levels.

Hub-Power led the list of actives, off 40 paisa at Rs35.50 on 28m shares followed by National Bank, up Rs1.25 at Rs47.75 on 25m shares, PSO, which was quoted ex-dividend, off Rs14.10 at Rs269.40 on 21m shares, Maple Leaf Cement, steady by five paisa at Rs25.90 on 16m shares and Pakistan Oilfields, up Rs5.85 at Rs191.25 on 16m shares.

Other actives were led by Dewan Salman, firm 20 paisa on 15m shares, Fauji Cement, up 65 paisa on 11m shares, PIAC, higher by 55 paisa on 10m shares, Pak PTA up 25 paisa on 9m shares and Bosicor Pakistan, off 55 paisa on 7m shares.

FORWARD COUNTER: PSO also came in for active selling on the forward counter and fell by Rs13.80 on 13m shares followed by Hub-Power, easy 35 paisa at Rs35.50 on 7m shares and PTCL, off 65 paisa at Rs33.60 on 5m shares.

Dewan Salman followed them, up 20 paisa at Rs18.60 on 2m shares and Pak PTA, higher 20 paisa on 1.357m shares. ICI Pakistan and Engro Chemical on the other hand came in for active short-covering and rose by Rs1.05 and Rs1.55 at Rs77.15 and Rs82.30 respectively.

DEFAULTER COMPANIES: Dull trading was again witnessed on this counter in the absence of strong demand from any quarter. Prices showed fractional changes both ways amid slow trading. There was no big deal in any of the share as the number of actives fell to about three dozen.

BOARD MEETINGS: Saudi Pak Leasing, National Foods, on Oct 21, Engro Chemical, Shezan International, Golden Arrow stocks, on Oct 22, Pakistan Gum Chemicals, Bank Al-Habib, Cherat Papersack, on Oct 23, Pakistan National Shipping Corporation Orix Leasing, Orix Investment Bank, on Oct 24, KASB Bank, Security Papers, on Oct 25, Atlas Battery and PICIC on Oct 27.