KARACHI, Jan 6: Positive end of the Islamabad Saarc summit on Tuesday failed to boost stock trading as investors were not inclined to make bigger commitments owing partly to negative signals from the carryover market and partly to the proposed auction of Pakistan Investment Bonds on Jan 19.

The Islamabad summit has certainly broken the ice between the two warring neighbours, reinforcing the perception of a durable peace and resolution of problems through talks. Investors are waiting for more details about the final outcome of the meeting before taking fresh positions.

"The summit seems to have fallen short of the market expectations as there was no major declaration on any of the current issues," says a leading stock analyst, adding "it, however, welcomed the Musharraf-Vajpayee meeting that could lead to some major decisions from both the sides on the Kashmir issue."

Pakistan as a host country was more aggressive to work out a resolution on some of the contentious issues but miracles do not happen overnight, he adds. The market's uneven performance was also well-reflected in an erratic movements of the KSE 100-share index, which after early decline of 20 points managed to finish with a modest rise of 14.21 points, well above the crucial level of 4,500 at 4,514.84 points in an expanded volume.

Analysts are assessing the impact of sale of Pakistan Investment Bonds worth Rs3 billion having a maturity period of 15 to 20 years on Jan 19. According to the State Bank sources, yields on them will be determined by the prevailing market forces.

"There may not be a big outflow of money from the stocks to the bonds as the amount is too small to have any negative impact on the market," they said, adding "investors are certainly worried over the higher volumes in petroleum stock on the carryover market."

Higher badla rates at around 17 per cent also worried investors, which could well mean a lot of selling from the retailers to meet their payment obligations and the consequent decline in share values.

However, a section of leading analysts believes the impact of some positive developments on the core issues at the Saarc summit will be much bigger on stock trading in due course as being speculated at this time.

Minus signs dominated the list under the lead of leading shares, notably Ferozsons Lab, Pakistan Refinery and Rafhan Maize Products, off Rs6.40 to Rs11. They were followed by Gatron Industries, Noon Sugar, Al-Ghazi Tractors, Atlas Battery, Berger Paints, BOC Pakistan, Gillette Pakistan and Tri-Pack Films, which suffered fall ranging from Rs2 to Rs3.80.

Some of the leading shares, however, maintained their upward drive and rose further by Rs4 to Rs10, under the lead of Dawood Cotton, Cherat Papers, Dawood Cotton, Millat Tractors, Lawrencepur Woollen, Pak-Suzuki Co, Pakistan Services, Atlas Honda and Unilever Pakistan.

Trading volume fell to 248m shares from the previous 244m shares as losers forced a modest lead over the gainers at 167 to 150, with 47 shares holding on to the last levels.

Sui Northern Gas topped the list of actives, higher by Rs1.55 at Rs44.80 on 47m shares, Sui Southern Gas, up one rupee at Rs31.15 on 37m shares, Engro Chemical, higher by Rs1.35 at Rs97.95 on 22m shares, PTCL, firm by 15 paisa at Rs36.75 on 14m shares and Lucky Cement, steady 15 paisa at Rs25.40 also on 14m shares.

Other actives were led by PIAC, lower 25 paisa on 12m shares, Pakistan Oilfields, off Rs1.50 on 11m shares, D.G. Khan Cement, up 20 paisa also on 11m shares, PSO, off Rs1.05 on 10m shares and Maple Leaf Cement, up 80 paisa also on 10m shares.

FORWARD COUNTER: Barring fresh fall of Rs1.75 in PSO on renewed selling owing to delay in the announcement of its final bidding date on 5m shares, all other speculative shares rose under the lead of Engro Chemical and Sui Northern Gas, up by one rupee and Rs1.50 at Rs98.25 and Rs44.80, respectively, on 2m and 7m shares.