21 February 2004	Saturday	29 Zilhaj 1424

KARACHI, Feb 20: Stocks on Friday further fell across a broad front as investors indulged in weekend profit-selling at the inflated levels, but the selling was well-absorbed at the dips. The KSE 100-share index shed 25 points at 4,868.82.

Bulk of the selling remained confined to the current volume leaders and overvalued shares, which still ensure handsome capital gains. The presence of matching buying support reflected that there was nothing inherently wrong with the underlying sentiment, which remained uppishly inclined.

A formidable section of day-traders and small investors, who do not like to hold long positions owing to weekend considerations, generally get out of the market after taking profits.

The perceptions of peace with India and higher corporate announcements from banking and auto sectors did not allow investors to sit on the sidelines and they actively participated in the daily proceedings, notably at the dips. The selling was normal and overdue on technical grounds, but there is nothing to suggest that bears could have a field day during the next week.

The KSE 100-share index, however, failed to sustain the twice-attained crucial levels of 4,900 points during the week as bears fought back and managed to keep it below this level amid alternate bouts of buying and selling.

It finally finished at 4,868.82, off 24.82 points as compared to 4,893.64 a day earlier, but indications are that it is poised to stay above the index level of 5,000 points possibly by the next week.

"The consensus peace roadmap agreed between India and Pakistan in Islamabad meeting could, over the next couple of months, lead to normal political as well as trade relations between the two," analysts said. "Peace on the borders and positive news from the local corporate sector could keep the investors in a good mood in the coming weeks."

On top of it are reports of higher earnings by most of the leading shares, notably in the banking and auto sectors and enhanced dividend will not allow the investors, both genuine and financial to leave the market, they said.

"Return on investment in shares is now much higher than any other mode of investment here, says a leading broker, adding "only fools could keep out not the moneyed people."

That is perhaps why both the market capital and the index level is at all-time higher levels and indications are that both are poised to set new records in the weeks to come, he predicts.

Minus signs dominated the list under the lead of Pakistan Oilfields and Unilever Pakistan, off Rs11.15 and Rs20.50, respectively, followed by Javed Omer, Thal Jute, Packages, Pakistan Gum Chemicals, Parke-Davis, HinoPak Motors and Al-Ghazi Tractors, which suffered fall ranging from Rs2.70 to Rs5.50.

Fateh Textiles and Nestle MilkPak were among the leading performers, up Rs18 and Rs23, respectively, on active short-covering at the lower levels followed by Clover Pakistan, Colgate Pakistan, PSO, National and Pakistan Refinery, and New Jubilee Insurance some others, up Rs3 to Rs4. Arif Habib Securities was up by Rs23.60.

Trading volume fell to 272m shares from the previous 393m shares as losers forced a strong lead over the gainers at 237 to 118, with 46 shares holding on to the last levels.

PIAC again topped the list of actives, easy 10 paisa at Rs24.80 on 30m shares followed by Dewan Salman, firm five paisa at Rs25.90 on 28m shares, PTCL, lower 15 paisa at Rs39.65 on 27m shares, PSO, higher by Rs3.40 at Rs291.40 on 18m shares and Pakistan Oilfields, off Rs11.15 at Rs212.10 on 17m shares. The selling was prompted by market of lower profits.

Other actives were led by OGDCL, off 85 paisa on 16m shares, D.G. Khan Cement, easy 75 paisa also on 16m shares, ICP SEMF, higher by Rs1.25 on 13m shares, Fauji Cement, higher 30 paisa on 11m shares and Dewan Farooq Motors, up 35 paisa on reports of franchise to assemble Mitsubishi line of vehicles here on 10m shares.

FORWARD COUNTER: PSO came in for strong speculative support on rumours an imminent final bidding date for its sell-off, higher by Rs3.70 at Rs291.60 on 5m shares followed by PTCL, easy 10 paisa at Rs39.70 on 4m shares, Pakistan Capital Market Fund, lower 40 paisa at Rs10.20 on 3m shares, Dewan Salman, steady 10 paisa at Rs25.70 also on 3m shares and Hub-Power, lower 35 paisa at Rs38.90 on 2m shares. MCB and Fauji Fertilizer were leading among the losers, off Rs1.05 and Rs1.45 at Rs50.95 and Rs107.10, respectively, on modest activity.

DEFAULTER COS: Trading activity on this counter was relatively slow owing to weekend considerations. Most of the active shares finished with either-way modest price changes. Standard Bank was, however, an exception, which was again actively traded, lower 40 paisa at Rs8.20 on 0.140m shares.