December 12, 2003	Friday	Shawwal 17, 1424

KARACHI, Dec 11: The recent upward drive was halted on the stock market on Thursday as investors hastened to take profits at the higher levels amid fears of a possible deadlock on the LFO issue after the ruling party linked the passage of the constitutional package with the vote of trust to the president.

The future direction of the market is evenly balanced based on some basic fundamentals but an expected turmoil on the political front could work against the underlying sentiment if political deadlock continues.

What will be the impact of MMA chairman, Shah Ahmed Noorani’s sudden demise on its future plans regarding the anti-government drive will be known during the next couple of sessions, brokers said.

The KSE 100-share index shed 46.85 points at 4,264.11 as compared to 4,310.96 a day earlier, reflecting the weakness of the leading base shares.

A good bit of selling from retailers was also attributed to the proposed changes in the carryover market from Dec 15, as the new rules about the exposure limits under which the business will be conducted are billed as pretty hard to be abide by.

Substantial increase in the carryover volume, notably in the secondary issues also worried investors, causing a good bit of selling by some of the leading investors also, notably in those stocks, which will be out of the list of 30 selected ones.

Analysts fear a possible deadlock on the issue of LFO as the ruling party has linked the presentation of the constitutional package for the approval of the parliament if the MMA agrees to give vote of trust to the President.

Although the MMA’s supreme council will debate the new condition, its general secretary has already refused to give vote of trust to the President in the Parliament. Its other top leaders have also on record said of taking identical position on the issue.

“Fears that if the MMA goes along with its protest plan from Dec 18, there could be problems of law and order and could significantly overshadow the current positive developments on the corporate front,” analysts said.

All the leading shares, which had soared to new peak levels during the last three sessions fell sharply on active selling at the inflated levels. Prominent among them being Century Papers, Clariant Pakistan, Pakistan Oilfields, Pak-Suzuki Motors, National Refinery, PSO and Javed Omer, off Rs3.15 to Rs12.05.

Leading gainers were led by Aventis, Spencer & Co Pakistan and Wyeth Pakistan, which posted fresh gains ranging from Rs8.40 to Rs90 followed by International Industries, Al-Ghazi Tractors, Indus Motors, Pioneer Cables, Security Papers and Siemens Pakistan,up Rs.3 to Rs5, largest rise of Rs26 being in Siemens Pakistan.

Most of the secondliners, notably in the cement and some other sectors also came in for stray selling at the inflated levels and finished lower.

Trading volume rose to 346m shares from the previous 331m shares as losers forced a strong lead over the gainers at 184 to 111, with 45 shares holding on to the last levels.

National Bank topped the list of most actives, up 80 paisa at Rs52 on 44m shares, PIAC, unchanged at Rs19.95 on 40m shares, Maple Leaf Cement, off Rs1.05 at Rs29.30 on 35m shares, D.G. Khan Cement, lower Rs2.30 at Rs44.40 on 34m shares and Hub-Power, easy 40 paisa at Rs38.65 on 30m shares. Other actives were led by FF Bin Qasim, off 75 paisa on 20m shares, PTCL lower 75 paisa also on 20m shares, Sui Southern Gas, up Rs2 on 16m shares, Pakistan Oilfields, off Rs3.70 on 15m shares and PSO, lower by Rs6.75 also on 15m shares.

FORWARD COUNTER: Speculative issues on the forward counter also came in for active selling and fell to finish sharply lower under the last of PSO, off Rs6.80 at Rs274.10 on 9m shares followed by FF Bin Qasim, lower 70 paisa at Rs20.25 on 5m shares, PTCL, easy by 60 paisa at Rs36 on 4m shares and Hub-Power, off 40 paisa at Rs38.80 also on 4m shares.

OGDC came in for active selling but averted major decline thanks to active short-covering at the dips, falling by one rupee at Rs50.10 on 87m shares. MCB, Nishat Mills, Engro Chemical, Fauji Fertilizer and ICI Pakistan also suffered fall ranging from Rs1.40 to Rs2.10.

DEFAULTER COMPANIES: Suzuki Motorcycles and Biafo Industries again came in for active bouts of buying and selling. While the former fell by 75 paisa at Rs14.75 on 0.297m shares, the latter posted a fresh gain of 30 paisa at Rs8 on 0.310m shares. Others were traded modestly mostly on the lower side.

DIVIDEND: Towellers, cash five per cent, Tandlianwala Sugar, right shares at 40 per cent or at premium of Rs4 per share, Hala enterprises, Sindh Fine Textiles, Khurshid Spinning and Inter-Asia Leasing, all nil for the year ended Sept 30, 2003.

BOARD MEETINGS: Yusuf Textiles, Dawood Cotton, Dilon, Burewala Textiles, Lawrencepur Woollen, on Dec 12, Quetta Textiles, Al-Abbas Sugar, Premium Textiles, on Dec 16 and Javedan Cement, on Dec 17.