November 4, 2003	Tuesday	Ramazan 8, 1424

KARACHI, Nov 3: Trading volume on the Karachi Stock Exchange fell further on Monday as leading investors again kept to the sidelines allowing jobbers and day traders to keep the wheels moving who played on both sides of the fence. The KSE 100-share index recovered 12.53 points at 3,793.56.

The falling daily turnover figure reflects that big ones are inclined to keep a status quo but how long is unclear, while on the other hand their followers are eagerly awaiting their return to restore respectability to the figure.

“Not the advent of the holy month nor the recent checks announced by the central bank on bank operations in the share business, which will be effective from January next year could be cited as the chief inhabitants behind the market’s current sluggishness,” analysts said. “One has to find the depressants beyond them.”

One thing, however, appears certain that the market has risen beyond its financial mandate and those who had performed the miracle may now be a bit sorry for their lifetime achievement, some other say.

The covering purchases will re-emerge in a big way after the market attains its financially viable level in due course as basic fundamentals are still positive, they said.

The KSE 100-share index, however, managed to put on a modest gain of 12.53 points at 3,793.56 as compared to 3,781.03 at the last weekend, reflecting the strength of leading base shares.

It was again PSO day as investors continued to make fresh commitments in it after the issue of its outstanding dues was referred to the Economic Coordination Committee, which, according to market talk, has already okayed the understanding reached between the government and the PSO management.

“The perception that PSO final bidding date could be announced any time has ended speculation at least for the time being and genuine investors are taking positions at the current lower levels,” analysts said.

The broader market derived a partial strength from reports of settlement of payment of outstanding dues of Rs7.60 billion against Wapda and the KESC. For the last three sessions, PSO shares had recovered smart recovery on strong buying triggered by the reports of settlement.

Wapda and the KESC, owe Rs4.40bn and Rs3.20bn respectively to PSO claimed to be one of the major irritants forestalling the fixation of final bidding date for its sell-off.

One of the foreign short-listed bidder from Kuwait Petroleum had also sought official clarification about the settlement of outstanding dues, which in turn did not allow the Privatization Commission to announce final bidding date for the last six months.

“Light earning calendar as well as absence of some stimulating news from micro and macroeconomic fronts seem to have compounded the malaise of trading in stocks,” says a leading analyst adding “the absence of market trend-setters followed by reports of central bank curbs on their investment beyond 20 per cent of their reserves or not more than five per cent equity holding in any of the shares further accentuated the situation.”

The market decline was led by the textile and allied sectors owing to higher lint cotton prices, while energy and auto share came in for active support at the lower levels and led resistance to further declines.

Leading gainers were led by Pak-Suzuki Motors on large expansion plans, Pakistan Refinery, National Refinery and PSO, which posted gains ranging from Rs4.50 to Rs7.10, followed by Attock Refinery, Indus Motors, Dawood Hercules, Al-Ghazi Tractors and Murree Brewery, up Rs2.08 to Rs3.75.

Losers were led by Pakistan Services, Clover Pakistan, Mari Gas, Thal Jute, Gatron Industries, Bhanero Textiles and Unilever Pakistan, off Rs3 to Rs22. Others fell modestly.

Trading volume fell further to 76m shares from the previous 83m shares as losers maintained a fair lead over the gainers at 97 to 48, with 44 shares holding on to the last levels.

PSO topped the list of most actives, higher by Rs7.05 at Rs257.50 on 15m shares, PTCL, unchanged at Rs33.55 on 9m shares, DG Khan Cement, steady five paisa at Rs36.65 on 5m shares, Bosicor Pakistan, higher by Rs1.50 at Rs14.90 also on 5m shares and Hub-Power, up five paisa at Rs34.35 on 4.508m shares.

Other actives were led by Pakistan Oilfields, off 45 paisa on 3m shares, National Bank, easy 50 paisa also on 3m shares, FFC-Jordan Fertilizer, up 30 paisa on 2,565m shares, Fauji Cement, firm by five paisa on 2.428m shares and MCB, off 90 paisa on 2m shares.

FORWARD COUNTER: PSO again came in for active support and rose by Rs7.75 on 7m shares followed by PTCL, unchanged at Rs33.60 on 2m shares, Hub-Power, up 30 paisa at Rs34.60 on 1.178m shares, FFC-Jordan Fertilizer, higher by eight paisa at Rs16.85 on 0.609m shares and ICP Pakistan, off 85 paisa at Rs71.40 on 0.540m shares.

DEFAULTER COMPANIES: Barring Standard Bank, which was traded unchanged at Rs5.95 on 83,000 shares, all other shares showed fractional changes amid alternate bouts of buying and selling but there was no major turnover in any of them.