October 21, 2003	Tuesday	Sha'aban 24, 1424

KARACHI, Oct 20: Stocks on Tuesday turned mixed as some of the low-priced shares came in for active short-covering at the lower levels and finished partially recovered amid light trading. The KSE 100-share index rose by 36 points at 4,005.40.

Much of the activity remained confined to second-liners, while among the pivotals, PSO came in for active short-covering ahead of its board meeting on Oct 23 and market talk of a good interim dividend.

However, falling turnover figure reflects the absence of leading investor, notably the institutional traders and in their absence retailers and jobbers played on both sides of the fence.

The KSE 100-share index recovered 35.94 points at 4,005.40, closing slightly above the crucial barrier of 4,000 points but analysts are unsure about its future direction.

Investors are anticipating an interim dividend after PSO’s board meets on Oct 23, to review the quarterly working results and this perception is well-reflected in the performance of its share value, which rose by Rs3.95 at Rs264.

During the last couple of weeks, its share value has been fluctuating between Rs260 and Rs300 amid conflicting reports about the final bidding date of its sell-off to one of the three short-listed companies. But till now there is no official word on it.

“What seems to be the chief reason behind the standoff is the question of debt of Rs7.60 billion, which the Wapda and the KESC owe to it,” one analyst said. “Until the government guarantees the repayment, no bidders will probably opt for bidding.”

But some others claim some official rethinking on the issue in the backdrop of adverse press comments on the sell-off of a profitable state-unit may be another factor behind the delay. The final bidding of PSO sell-off is being postponed since April this year.

“The market needs massive amounts of fresh money to pull the market out of the prevailing sluggishness,” a leading broker, commenting on the current dull trading and falling volumes, says.

The absence of institutional traders seems to have taken steam out of the market and until they are back, the trading may remain sluggish and devoid of any special feature during the sessions to come also, he adds.

However, a section of retailers and small investors shifted their buying support to some low-priced issues and played around them for marginal gains. Pakistan PTA and FFC-Jordan Fertiliser were leading among them, which lead the market resistance to further decline.

Prominent gainers were led by Shell Pakistan, Packages and Grays of Cambdrige, up Rs7, Rs9.45 and Rs15 followed by Bhanero Textiles, Thal Jute, Glaxo-SKF, PSO, ICI Pakistan, Jahangir Siddiqui & Co and Ghani Glass, which posted gains ranging from Rs2.85 to Rs5.70.

Losses on the other hand were mostly fractional and reflected lack of support rather than large selling from any quarter. Island Textiles, Clariant Pakistan, Aventis Pharma, Clover Pakistan, Wyeth Pakistan and Unilever Pakistan were leading among them, off Rs5 to Rs25. Javed Omer, Lakson Tobacco, Fazal Textiles and Century Papers, also fell by Rs2.25 to Rs3.10.

Trading volume fell further to 162m shares from the previous 169m shares as losers maintained a fair lead over the gainers at 157 to 113, with 45 shares holding on to the last levels.

Pakistan PTA topped the list of most actives, up 15 paisa at Rs11.70 on 24m shares, followed by FFC-Jordan Fertilizer, sharply higher by Rs1.50 at Rs16.95 on 22m shares, PSO, higher Rs3.95 at Rs264 on 16m shares, Hub-Power firm by 25 paisa at Rs35.65 on 15m shares and Dewan Salman, up 60 paisa at Rs19.15 on 14m shares.

Other actives were led by DG Khan Cement, off Rs1.20 on 8m shares, National Bank, up 45 paisa on 7m shares, ICI Pakistan, higher by Rs2.90 on 5m shares, Dewan Farooq Motors, up Rs1.05 also on 5m shares, Pakistan Oilfields, higher 25 paisa on 4m shares.

FORWARD COUNTER: Speculative issues on the forward counter showed firm as prices rose under the lead of ICI Pakistan and PSO, up Rs2.40 and Rs2.45 at Rs78.60 and Rs262.25. PSO was actively traded and accounted for 9m shares.

FFC Jordan Fertilizer followed them, higher by Rs1.50 at Rs17.05 on 5m shares, PTCL, steady 10 paisa at Rs33.80 on 4m shares. Hub-Power was marked up by 15 paisa at Rs35.65 on 4m shares, while Pak PTA rose by Rs1.10 at Rs12.75 on 3m shares.

DEFAULTER COMPANIES: Trading activity on this counter was relatively slow in the absence of strong support from any quarter. As a result, prices showed fractional either-way changes.

Standard Investment Bank was the only exception, which came in for active selling and fell by 20 paisa at Rs5 on 0.202m shares. Other turned out modest volumes.