October 18, 2003	Saturday	Sha'aban 21, 1424

KARACHI, Oct 17: Stocks on Friday lacked normal trading interest in the absence of leading investors and fell across the board followed by selling by retailers and jobbers amid light trading. The KSE 100-share index suffered a decline of 46.48 points at 3,969.46.

It was the repeat performance of the last couple of sessions. The opening was fairly promising on strong early buying at the lower levels but after mid-session the same set of operators who had purchased earlier left the market after taking profits at the available margins.

Investors should have taken cue from some of the upcoming positive development, notably central bank’s announcement to issue T-bills worth Rs60bn to retrieve $1.07bn foreign debt and Sui Southern Gas’s ambitious expansion plan envisaging an investment of Rs34.5 billion over the next five years but there was no immediate positive reaction to the both, analysts said. The entire activity reflects that no one is inclined to hold long positions even for a day and gets out of the market toward the closing bell either losing or gaining in the day’s proceedings, analysts said.

The KSE 100-share index suffered a fresh fall of 46.48 points at 3,969.46 as compared to 4,015.16 a day earlier as all the leading base shares fell on late selling.

The opening was on the higher side what the dealers called, the extension of the overnight rally but mid-session saw a lot of profit-selling at the inflated levels, pushing the entire market into the minus column.

The background news may not be that disturbing but rather most of them are positive but the market appears to be the victim of slack demand rather than large selling from any quarter.

The falling daily volumes eloquently speak of this fact. The current levels attained by most of the leading shares are attractive enough for any future gainful investment but investors are trying to keep to the sidelines rather riding the bandwagon.

Some positive developments on the corporate front, notably the approaching dates of privatization of some mega issues including the history’s largest offering of a state-owned unit should have evoked a lot of fresh buying by both the institutional traders and bargain-hunters, no one appears to be in a mood to make long-term commitments.

The Oil and Gas Development Company (OGDCL), is expected to offer 215 million shares at Rs32 per share before the month is out, billed as prime offer at this rate, analysts said adding “the new entrant is Sui Southern Gas, which will also offload five per cent of its total shareholding.”

The market decline was again led by the energy and cement shares, while some leading shares on the other counters also fell sharply on renewed selling. Synthetic and auto shares managed to finish modestly higher on reports of higher earnings. Synthetic shares also rose on reports of increase in price in line with the lint cotton.

Leading gainers were led by Murree Brewery, Packages, Cherat Papers, Jamal Din Wali Sugar, Gatron Industries, Escort Bank and Sajjad Textiles, up Rs1.50 to Rs3.65, while Arif Habib Securities rose by Rs18.

Among the top losers, Wyeth Pakistan was leading, off Rs30, followed by Clover Pakistan, Ferozsons Lab, Aventis Pharma, Lakson Tobacco, Pakistan Refinery, Shell Pakistan and PSO, which suffered fall ranging from Rs4 to Rs9.35. BOC Pakistan, Unilever Pakistan also fell by Rs3 to Rs39.

Trading volume fell to 169m shares from the previous 218m shares in the absence of strong demand from leading investors. Losers maintained a strong lead over the gainers at 187 to 75, with 38 shares holding on to the last levels.

PSO led the list of actives, off Rs9.35 at Rs260.05 on 26m shares followed by Hub-Power, lower 10 paisa at Rs35.40 on 22m shares, National Bank, easy 30 paisa at Rs47.45 on 18m shares, Dewan Salman, unchanged at 18.55 on 11m shares and Fauji Cement, off 60 paisa at Rs10.30 on 10m shares.

Other actives were led by Pakistan Oilfields, off Rs1.25 on 9m shares, FFC-Jordan Fertilizer, easy 55 paisa on 8m shares, PIAC, lower 30 paisa on 7m shares, Pak PTA, off 40 paisa also on 7m shares and D.G. Khan Cement, easy by Rs2.05 on 5m shares.

FORWARD COUNTER: PSO also came in for active support on this counter and fell by Rs8.40 at Rs261.80 on 19m shares followed by Hub-Power, unchanged at Rs35.50 on 5m shares, PTCL, up 10 paisa at Rs33.70 also on 5m shares, FFC-Jordan Fertilizer, lower 70 paisa at Rs15.35 on 2m shares and Dewan Salman, unchanged at Rs18.60 on 1.570m shares.

DEFAULTER COMPANIES: Unity Modaraba and Standard Bank came in for active support and finished higher by 20 and 25 paisa at Rs6 and Rs1.50 on 0.180m and 186m shares respectively, while all others were modestly traded in the absence of strong demand.

DIVIDEND: Searle Pakistan, cash 10 per cent, B.R.R International Modaraba, Rs1.60 on each certificate of Rs10.

BOARD MEETINGS: Lakson Tobacco, Treet Corporation on Oct 21, Equity Modaraba, Pakistan Oilfields, Glaxo-SKF, on Oct 22, Dynea Pakistan, TRG Pakistan, Berger Paints, Colgat Pakistan on Oct 23, KESC, Soneri Bank, on Oct 24 and Dawood Hercules on Oct 25.