17 February 2004	Tuesday	25 Zilhaj 1424

KARACHI, Feb 16: Stocks on Monday gave another highly volatile performance as investors played on both sides of the fence selling at the rise and buying at the dips, but the undertone remained uppishly inclined.

The market's erratic movement was well reflected in the fluctuations of the KSE 100-share index, which earlier broke the barrier of 4,900 at 4,926 and then fell to finish fractionally lower by 0.09 point at 4,874.13.

The initial run-up was attributed to resumption of talks with India after a gap of about five years to normalize relations with India, but late unloading was caused by technical factors.

There was, however, no major immediate depressant to trigger panic selling sans rumours that the cement cartel holding the current prices in the cement sector has been broken did cause panic selling in leading shares, including D.G.Khan Cement and some others. The spillover of selling was also witnessed in other allied sectors.

Dividend announcements, notably from the Union Bank, whose directors came out with a cash dividend of 10 per cent plus bonus shares of an identical amount were on the higher side of the market expectations and was well-received among the investors.

Omission of final cash dividend by Muslim Commercial Bank as two interims of 27 per cent became final, did cause stray selling in it but it was well-absorbed as the management has announced bonus shares of 10 per cent.

"Both bulls and bears appears to be in straight fight to outwit each other," analysts said, adding "while the former are out to race through the next barrier of 5,000 index level, the latter are halting their onward thrust just in one go," analysts said. However, bears seem to be fighting a losing battle as all positive factors, including peace moves with India, are in their favour and they are cashing in on them.

There may be some two opinions on the nuclear proliferation issue among the leading investors, indications are that an immediate negative fallout has already been absorbed by the market during the last couple of weeks.

But upcoming higher corporate announcements due during the next couple of sessions by some of the leading companies will not allow any major dents in the prevailing price structure, brokers said.

It was in this background that minus signs dominated the list under the lead of Thal Jute, BOC Pakistan, Sitara Chemical, Unilever Pakistan, PSO, Javed Omer, Dreamworld and some others, off Rs2.85 to Rs5.

But the largest decline was noted in IGI Insurance and Siemens Pakistan, which fell by Rs13 to Rs20. Some of the leading shares did not toe the market's general line of action and rose by Rs6.05 to Rs7.20 for Pakistan Refinery, Treet Corporation and Packages.

Other good gainers were led by Noon Pakistan, Century Papers, Pakistan Gum Chemicals, Exide Battery, Attock Refinery, Lakson Tobacco ahead of its board meeting and Dawood Hercules, which posted gains ranging from Rs2.50 to Rs4.85.

Trading volume rose to 375m shares from the previous 275m shares as losers forced a strong lead over the gainers at 216 to 158, with 56 shares holding on to the last levels.

PTCL topped the list of actives, up 40 paisa at Rs39.75 on 60m shares, followed by Sui Northern Gas, higher by Rs1.25 at Rs57.90 on 40m shares, D.G.Khan Cement, off Rs1.95 at Rs46.30 on 29m shares, Sui Southern Gas, up 65 paisa at Rs34.85 on 27m shares, OGDCL, lower 35 paisa at Rs52.10 on 23m shares.

Other actives were led by KESC, higher by 35 paisa on 16m shares, PIAC, easy 25 paisa on 14m shares, Maple Leaf Cement, off one rupee also on 14m shares, Hub-Power, easy 25 paisa on 11m shares and FF Bin Qasim, lower 55 paisa also on 11m shares.

FORWARD COUNTER: PTCL again led the list of actives on this counter, up 20 paisa at Rs39.60 on 7m shares followed by Sui Northern Gas, higher by Rs1.25 at Rs57.85 on 5m shares, PSO, off Rs2.10 at Rs287.40 on 3m shares, MCB lower Rs2.20 at Rs51.65 on 3m shares and Hub-Power, lower 35 paisa at Rs39.30 also on 3m shares. Nishat Mills also fell by Rs2.05. But on the other hand Fauji Fertilizer came in for active support and rose by Rs2.40 at Rs110.40 and so did some others.

DEFAULTER COMPANIES: Kashmir Edibles came in for active support at the previous level, unchanged at Rs14 on 1.242m shares followed by Standard Bank, easy 75 paisa at Rs8.30 on 0.749m shares and Fidelity Bank, firm by five paisa at Rs10.30 on 0.310m shares. Some others were also actively traded.

DIVIDENDS: Union Bank, cash 10 per cent, bonus shares of the same amount; MCB, bonus shares at the rate of 10 per cent, final cash dividend already declared 27.5 per cent.

BOARD MEETINGS: Ghani Glass, Feb 19; Ibrahim Leasing, Allied Bank Modaraba, Shield Corporation, Pakistan House International, on Feb 20; PICIC, on Feb 23; Faysal Bank on Feb 25; and Askari Leasing on Feb 27.