December 4, 2003	Thursday	Shawwal 9, 1424

KARACHI, Dec 3: Stocks on Wednesday suffered a mild reaction as a section of leading investors took profits at the inflated levels on the blue chip counters apparently to meet their technical demands.

But there is nothing to suggest that the buying euphoria associated with the current peace offensive to normalize relations with India is fading.

The KSE 100-share index suffered a fall of 39.07 points at 4,266.31 as compared to 4,305.98 a day earlier as some of the leading base shares attracted profit-selling at the inflated levels.

“No one should entertain bearish ideas at least for the near-term”, says a leading broker “all the basic fundamentals are bullish and talk of the 5,000-point index level is based on them”.

Apart from the peace moves by both the countries, the market has some other positive news on the corporate front including privatization of the oil giant PSO.

“The markup waiver of Rs8bn payable by the PSO to the oil refineries and another benefit of Rs10 billion on other heads has apparently cleared the way for its sell-off”, analysts said.

Investors may have two opinions about the political constraints but the market is expected to perform according to its technical demands and news from across the border, they said.

The short-listed companies which were demanding the settlement of its outstanding receivables from KESC and Wapda and its liabilities before the fixation of final date of bidding and the latest official decision meets their demand clearing the way for the final bidding date.

During the last couple of sessions, PSO share has risen by about Rs30 and is expected to rise further after the final date of bidding is announced, dealers said.

Both leading brokerage houses and financial traders are piling high yielding stocks at each decline on the perception that a real turnaround above the 4,000-point index level is yet to come.

All eyes are now focussed on the official listing of the OGDC on the ready counter and its addition to the existing 100-share index as a base share, which could inflate it to any highs because of about 45 per cent weightage.

Leading gainers were led by Shell Gas and Unilever Pakistan, up by Rs17.25 and Rs44 followed by Dawood Hercules, Clover Pakistan, IGI and Javed Omer, which posted gains ranging from Rs6 to Rs7. Arif Habib Securities and some other leading shares, notably Abbott Lab, HinoPak Motors, EFU General, Ahmed Hassan and Mehmood Textiles also rose by Rs3.10 to Rs3.80.

Losers were led by Siemens Pakistan and Parke-Davis, off Rs18.50 to Rs43 followed by leading energy shares, notably National Refinery, Pakistan Oilfields, Shell Pakistan, Grays of Cambridge, Millat Tractors, Al-Ghazi Tractors and Wyeth Pakistan, which suffered fall ranging from Rs4.10 to Rs10.

Trading volume fell to 385m shares from the previous 469m shares as losers forced a comfortable lead over the gainers at 176 to 141, with 49 shares holding on to the last levels.

National Bank topped the list of actives, up by Rs1.20 at Rs51.15 on 43m shares followed by Fauji Cement, easy 25 paisa at Rs10.80 on 38m shares, FF Bin Qasim, lower 75 paisa at Rs20.65 on 38m shares, D.G.Khan Cement, off 90 paisa at Rs43.95 on 34m shares and Hub-Power, lower 60 paisa at Rs38.65 on 32m shares.

Other actives were led by PSO, off Rs1.15 on 32m shares, PTCL, easy, 80 paisa on 31m shares, Maple Leaf Cement, lower 55 paisa on 16m shares, PIAC, easy 70 paisa on 14m shares and Dewan Salman, off 90 paisa on 10m shares.

FORWARD COUNTER: OGDC again led the list of actives, off Rs1.85 at Rs47.85 on 70m shares followed by PSO, lower 70 paisa at Rs293.80 on 10m shares, PTCL, off 65 paisa at Rs36.20 on 6m shares, FF Bin Qasim, easy 70 paisa at Rs20.90 on 5m shares and Hub-Power, off 55 paisa at Rs38.90 also on 5m shares.

DEFAULTER COMPANIES: Standard Investment Bank and Biafo Industries came in for alternate bouts of buying and selling and while the former managed to finish unchanged at Rs7 on 0.136m shares, the latter fell by 20 paisa at Rs6.50 on 0.110m shares. Others were fractionally traded.

DIVIDEND: Umer Fabrics, cash 25 per cent, Shafiq Textiles, cash 10 per cent, Pangrio Sugar and Interfund Modaraba, both nil, for the year ended Sept 30, 2003.

BOARD MEETINGS: Sargodha Spinning, Shadab Textiles, on Dec 5, Prime Commercial Bank on Dec 6, Kashmir Edible Oils, Bhanero Textiles, Faisal Spinning, Blessed Textiles, Fecto Sugar, Baba Farid Sugar, Taha Spinning, Elite Textiles, Idrees Textiles, on Dec 8, Ravi Textiles, Haji Muhammad Ismail Mills, Hafiz Textiles, Kohat Textiles and Saif Textiles on Dec 9, 2003.