18 February 2004	Wednesday	26 Zilhaj 1424

KARACHI, Feb 17: Stocks on Tuesday again turned in a highly volatile performance as leading investors were not inclined to take positions on any of the counters apparently awaiting the outcome of Islamabad peace talk with India.

The KSE index fell by 41.74 points at 4,832.32.

Larger than expected unloadings from the carryover market was another destabilizing factor in the absence of strong financial support even on the low-priced blue chips.

The decline was led by the energy and auto shares followed by overvalued blue chips on the other counters, notably textile sector owing to a short crop and higher lint prices.

A final cash dividend of 150 per cent, with 130 per cent interim already paid by Rafhan Maize products, which is a maintained one, did not evoke any market reaction as its share value stayed unchanged at the previous level.

Analysts said the market is undergoing a technical correction before its onward thrust to the index level of 5,000 points as the lower levels in the leading index shares could warrant a needed upward push just in no time.

The successful sale of Eurobond should have added to the credibility of the stock market and chances of foreign investment in shares, notably of some MNCs, although it immediately boosts trading, they said.

"The coveted level is just a 100-point away as the index has already touched 4,900 level more than twice during the last couple of weeks but failed to sustain it for some technical reasons," they said.

It was perhaps in this background that the KSE 100-share index gave another highly volatile performance, touching the day's peak at 4,893 and the bottom at 4,813 before finishing around 4,832.39, off 41.74 points over the day.

"Investors seem to be awaiting the outcome of Indo-Pak peace talks currently in progress in Islamabad," says a broker. "Positive signals for next round at the higher level could trigger a lot of covering purchases at the lower levels." But some others said a section of leading investors have some rethinking on the nuclear proliferation issue and its likely negative fallout in the weeks to come on Pakistan's political scene despite positive statements from the US and had restricted to their market operations to mostly safe havens and risk-free stocks.

Unloadings from the carryover market despite stable badla rates also reflect some changes in the future market direction and investor perceptions at least for the near-term.

Most of the current favourites and leading stocks led the market decline under the lead of PSO, Engro Chemical, Fauji Fertilizer, Pakistan Oilfields and some other on the other counters being in the forefront.

The prominent losers were led by Javed Omer, Gatron Industries, Al-Ghazi Tractors, HinoPak Motors, Pak-Suzuki Motors, Indus Motors, Ferozsons Lab, Dreamworld, Atlas Battery and Shell Pakistan, which suffered fall ranging from Rs3 to Rs9.80. All was, however, not bad with the broader market as leading among them managed to finish higher under the lead of Siemens Pakistan and Parke-Davis, up Rs15 and Rs21 followed by Shafiq Textiles, Pakistan Tobacco, National Refinery, Century Papers, Jahangir Siddiqui Bank and Unilever Pakistan, which posted gains ranging from Rs2 to Rs5.

Trading volume fell to 269.732m shares from the previous 375m shares as losers maintained a strong lead over the gainers at 269 to 81, with 48 holding on to the last levels.

PTCL again topped the list of most actives, off 45 paisa at Rs39.30 on 42m shares followed by OGDC, easy 20 paisa at Rs52.10 on 34m shares, KESC, up 35 paisa at Rs8.25 on 23m shares, DG Khan Cement, higher 15 paisa at Rs46.45 on 19m shares and Hub-Power, off 35 paisa at Rs38.95 on 14m shares.

Other actives were led by Sui Northern Gas, off Rs1.15 on 13m shares, Dewan Salman, lower 60 paisa on 11m shares, PIAC, easy 35 paisa on 10m shares, PSO, off Rs1.35 on 8m shares and Maple Leaf Cement, up 20 paisa also on 8m shares.

FORWARD COUNTER: Hub-Power came in for active selling at the inflated level and fell by 35 paisa at Rs38.95 on 5m shares, followed by PTCL, easy by the same amount at Rs39.25 also on 5m shares, PSO, off Rs1.60 at Rs285.80 on 5m shares, Pakistan Capital Market Fund, easy 30 paisa at Rs10.60 on 3m shares and Sui Northern Gas, lower 95 paisa on 2m shares.

DEFAULTER COS: Unlike the previous session, the activity on this counter was relatively slow as barring Standard Bank, which rose by 10 paisa at Rs8.40, on 0.503m shares, all others were fractionally traded.

DIVIDEND: Rafhan Maize Products, final at the rate of 150 per cent, an interim of 130 per cent already paid for the year ended Dec 31, 2003.

BOARD MEETINGS: United Distributors, Pakistan Services on Feb 19, Arif Habib Investment, Habib Modaraba on Feb 20, Pakistan Oilfields, Mari Gas, Japan Power, Punjab Modaraba, SG Power on Feb 23, Zulfiqar Industries, National Bank Modaraba, Grindlays Modaraba, Haroon Oils and PICIC (revised) on Feb 24.