24 February 2004	Tuesday	03 Muharram 1425

KARACHI, Feb 23: The KSE 100-share index on Monday plunged by 112 points or 2.31 per cent on late selling prompted by reports of below analysts' predictions corporate announcements by some of the leading companies in the energy sector wiping out about Rs32 billion from the market capital at Rs1,230.477 billion.

"We don't think the current run-up is overdone," floor brokers said. "It is just a pause as bulls are preparing to launch an attack on their next target of the index."

The KSE 100-share index suffered a heavy decline, off 112.23 points at 4,756.59 points as compared to 4,868.82 at the last weekend as major leading shares attracted active selling but no matching buying from any quarter.

Bulk of the profit-selling was, however, confined to most of the overvalued shares, some of which came in for extensive pruning at the higher levels under the lead of energy shares, notably PSO and Pakistan Oilfields, off Rs7.50 and Rs10.60.

Working results of some of the energy giants, including Pakistan Oilfields, Sui Southern Gas, Attock Refinery, and some others were far below the analysts' predictions, which in turn caused widespread selling, dragging the entire market along with them in the downward territory.

The EPS of Pakistan Oilfields, at Rs9.49 as compared to its ruling share value above Rs200 was said to be one of the chief reasons behind the sell-off in it and in sympathy with in other leading stocks. During the last two sessions, its share value has dropped by Rs30 for a 10-rupee share.

"The jolt appears to be more psychological rather than genuine as in an overbought bears have a lot of manoeuvring leverage without any immediate risk and that was the reason behind the snap reaction," analysts said.

The issue of nuclear proliferation is still there, but its major negative fallout has been well-absorbed by the market as was reflected by its sustained rise to the index level of 5,000 despite a consequent technical pause.

But some others said the market had been in a terribly overbought position for the last couple of weeks due to a sustained run-up and needed correction, which though was delayed by some positive developments, notably Indo-Pak talks at last manifested itself in a bigger way.

"But I don't think bears have the guts to sustain the decline, though the market is still in a overbought position," claims a leading broker, adding "all is not bad on the corporate front as some best earning reports have yet to come."

All the overvalued shares, notably PSO, Engro Chemical, PTCL, Hub-Power, and OGDCL came in active selling and finished sharply lower under the lead of OGDCL and PSO. Some of the losers finished below their circuit breakers under the lead of Bosicor Pakistan, TRG Pakistan, Pak PTA and some others.

Minus signs dominated the list as prices fell like the house of card. Major losers were led by Attock Refinery, Pakistan Refinery, HinoPak Motors, Fauji Fertilizer, Glaxo-Wellcome, Colgate Pakistan, ICI Pakistan, Abbott Lab, Packages, PSO, Fateh Textiles and IGI Insurance, which suffered fall ranging from Rs4.25 to Rs10. There were many others which also fell sharply lower.

Some of the leading shares managed to put on modest gains under the lead of Gulshan Spinning, Al-Ghazi Tractors, Highnoon Lab, Hamza Sugar, National Refinery and Gatron Industries, up Rs1.30 to Rs4.90.

Trading volume fell to 235m shares from the weekend 272m shares, reflecting bulk of the selling did not find ready buyers at the dips. Losers held a strong lead over the gainers at 282 to 72, with 39 shares holding on to the last levels.

PIAC topped the list of actives, lower 65 paisa at Rs24.40 on 30m shares, followed by OGDCL, off Rs2.25 at Rs48.95 on 23m shares, PTCL, lower 70 paisa at Rs39 on 20m shares, Pakistan Oilfields, off Rs7.50 at Rs201.50 on 17m shares and Dewan Salman Fibre, easy by Rs1.45 at Rs24.65 on 15m shares.

Other actives were led by ICP SEMF, off Rs2.05 on 12m shares, Hub-Power lower 80 paisa at Rs38.15 also on 12m shares, PSO, sharply lower by Rs7.50 on 11m shares, FF Bin Qasim, easy 70 paisa on 10m shares and Sui Southern Gas, off Rs1.70 on 8m shares.

FORWARD COUNTER: PSO also came in for active selling on the forward counter in sympathy with its ready counter and fell by Rs7.35 at Rs284.25 on 5m shares followed by PTCL, easy 69 paisa at Rs39.01 on 4m shares, Hub-Power, lower 65 paisa at Rs38.25 also on 4m shares, Pakistan Capital Market Fund, off 75 paisa at Rs9.55 on 3m shares and Sui Northern Gas, off Rs2.81 at Rs53.54 on 2m shares.

Engro Chemical and ICI Pakistan also remained under pressure and fell by Rs2.84 and Rs3.90 at Rs93.50 and Rs80.90, respectively, and so did some others, including Dewan Salman.

DIVIDEND: IGI Insurance Co, cash 75 per cent; Metropolitan bank, bonus shares at the rate of 20 per cent; Pakistan Refinery, interim 25 per cent; and Attock Refinery, interim 10 per cent.

BOARD MEETINGS: Generteck Pakistan, Noon Pakistan, Tariq Glass, Dawood Leasing, on Feb 25; Pakistan Telecommunications on Feb 26; Grays of Cambridge, on Feb 26; and Pakistan Tobacco, on Feb 27.