10 February 2004	Tuesday	18 Zilhaj 1424

KARACHI, Feb 9: Stocks on Monday fell across-the-board on active unloading from the carryover holdings at the inflated levels and diversion of funds to the newly-floated shares of Sui Southern Gas Company. The KSE index was off 40.15 points and wiped out Rs13bn from the market capital at Rs1,267bn.

The selling was, however, well-absorbed at the dips on the perception that it is not that easy to beat the bulls at this stage despite the fact that the market is in a highly overbought position and developing situation on the nuclear front. "The bull grip on the current price line is terribly strong at least for the near-term," analysts claim.

But the dip was not without some special features as the KSE 100-share index briefly breached through the barrier of 4,900 at 4,915, but late selling pushed it down to finish lower by 40.15 points at 4,848.31, showing either-way movement of 75 points.

The decline was led by energy and auto shares, including PSO, Engro Chemical, Al-Ghazi and Millat Tractors, Pak-Suzuki Motors, Atlas Honda, ICI Pakistan, Sui Northern Gas, National Bank and most of the second-liners came in for active selling at the inflated levels and fell from the recent peak levels.

But on the other hand both National Refinery and Abbott Lab came in for strong support in a falling market followed by above market dividend. While the former came out with an interim of 25 per cent, the latter announced increased final dividend plus bonus shares at 30 per cent and 20 per cent, respectively. Abbott posted a gain of Rs8.45 at Rs121.30, while National Refinery spurted by Rs11.70 at Rs168.20 on large volumes.

The selling in part was also attributed to diversion of a sizable amount of funds to the Sui Southern Gas Company, which opened for public subscription today (Feb 9) and will remain open for three days up to Feb 11. Ten per cent shares, including five per cent greenshoe option or 67m shares, will be sold at the fixed price of Rs26.

Some of the investors sold in part overvalued shares to raise money for the Sui Southern shares, which claimed to be a good buy at the benchmark price. It is currently being quoted around Rs34 against its face value of Rs10 and benchmark price of Rs26.

During the last couple of weeks, the market had run up to new peak levels without any significant correction, improving all previous records both in terms of index and the market capital and needed a lot of selling being in a highly overbought position and that came the form of profit-selling.

"After having confidently absorbing the negative fallout of the nuclear issue, the market has the potential to sustain its current upward drive in the coming sessions also," analysts believe, adding "positive news from the economic front, higher corporate earnings and steady inflow of foreign buying could keep it in a good shape in future too."

But some others fear a loud whispering about the opposition's anti-government drive could take a big toll of a highly overbought market if it really attracts crowed on the nuclear issue in the proposed meetings.

Minus signs dominated the list, major losers being Javed Omer, Millat Tractors and Parke-Davis, off Rs7.95, 9.85 and Rs31 in that order. Others which fell were led by PSO, HinoPak Motors, Al-Ghazi Tractors, Grays of Cambridge, and Dreamworld, off Rs4 to Rs5.95.

Leading gainers were led by Mehmood Textiles, Shafiq Textiles, Kohat Cement, Mitchell's Farms, Packages, Dewan Textiles and Nestle MilkPak, up by Rs3.60 to Rs8, while Unilever Pakistan rose by Rs65.

Trading volume fell to 285m shares as a section of leading investors kept to the sidelines as compared to 365m shares at the last weekend. Losers forced a strong lead over the gainers at 264 to 122, with 48 shares holding on to the last levels.

The most active list was topped by PTCL, off 75 paisa at Rs38.95 on 36m shares followed by Hub-Power, lower 40 paisa at Rs39.30 on 33m shares, Dewan Salman, easy 10 paisa at Rs25.35 on 30m shares, Pakistan Oilfields, up 60 paisa at Rs228.60 on 15m shares and MCB, up 15 paisa at Rs54.80 on 14m shares.

Other actives were led by Sui Southern Gas, up 25 paisa on 13m shares, D.G. Khan Cement, lower Rs1.25 on 12m shares, National Bank, easy 55 paisa on 10m shares, Fauji Cement, lower 30 paisa on 8m shares and Pak PTA, easy 65 paisa on 7m shares.

FORWARD COUNTER: Speculative issues on the forward counter also followed the lead of their ready counterparts and fell sharply under the lead of PSO, Sui Northern, Engro Chemical and ICI Pakistan, off Rs1.10 to Rs1.35, the largest decline of Rs4 being in PSO.

PTCL topped the list of actives, off 45 paisa at Rs39.05 on 6m shares, followed by Dewan Salman, up 10 paisa at Rs25.20 on 5m shares, and Hub-Power, lower 10 paisa at Rs39.50 also on 5m shares, Pakistan Capital Market Fund was marked down by 40 paisa at Rs10.95 on 4m shares.

DEFAULTER COS: Kashmir Edibles led the list of actives, up 35 paisa at Rs14.35 on 1.666m shares followed by Quice Foods, unchanged at Rs2.95 on 0.337m shares and Indus Fruits, lower 25 paisa at Rs5.65 on 0.241m shares.

DIVIDEND: Abbott Lab, final 30 per cent, interim 20 per cent already paid, plus bonus shares of 20 per cent (previous cash 45 per cent, bonus shares 10 per cent); National Refinery, cash interim 25 per cent; Kohat Cement, cash 30 per cent; Transmission Engineering, nil.

BOARD MEETINGS: Al-Meezan Islamic Bank, on Feb 10; Agriautos, Prime Commercial Bank, Treet Corporation, on Feb 12; Haydari Construction, on Feb 13; Habib Arkady, on Feb 14; and Security Leasing Corporation, on Feb 16.