12 May 2004	Wednesday	21 Rabi-ul-Awwal 1425

KARACHI, May 11: Trading activity on the stock market on Tuesday further shrank as investors were not inclined to make bigger commitments because of negative political signals from Islamabad.

"I don't call it a political uncertainty," an analyst commenting on the news from Islamabad says "but some have made it look so taking advantage of conflicting reports about the unity in the ruling elite."

The KSE 100-share finished with an extended fall of 19.15 points at 5,457.86 as compared to 5,477.01 a day earlier, after showing some erratic movements. It was the weakness of leading shares including OGDC, PTCL, PSO and some others, which weighed heavily against the sentiment.

The fall would have been much bigger had the cement sector not come to the rescue of the broader market, brokers said. Most of the leading cement shares came in for strong support on the strength of higher exports, increase in production and market talk of good interim dividend. But after moving either-way, the broader market was never in its oldself as bulls were taking a technical pause in an effort to let price move further down and then to resume covering operations at the lower levels.

The underlying sentiment was also bearish because of the two opinions about the arrival of PML president Shahbaz Sharif later in the evening and the government reaction and its impact on the political scene in the coming weeks.

Whether he will be arrested or deported soon after his arrival at the Lahore airport was the question being debated in the corridors, which in turn has a negative impact on the trading volume.

The market may rule in a dull fashion in the coming sessions also as the negative undercurrent of political events, notably reported differences in the ruling elite on some major political issues could keep investors away from physical trading, analysts said.

"News from Islamabad are not that encouraging now a days," they said. "Essentially being highly sensitive to adverse political developments, the market abhors uncertainty as it hurts its inherent strength in more than one ways." And added to it are conflicting reports about the final winners in the just concluded elections as Pakistan has stake in them to sustain the recent peace moves between the two.

Minus signs again dominated the list but most of the losses were fractional barring EFU Life, Al-Abbas Sugar, Atlas Honda, Grays of Cambridge, and BOC Pakistan, off by Rs3 to Rs6. The largest fall of Rs20.95 was noted in Javed Omer.

Some of the leading shares on the other hand posted good gains, major gainers being Aventis, International Industries, Nestle Milkpak and IGI Insurance, which rose by Rs11.55 to Rs19.80. Other good gainers were led by Noon Sugar, EFU General, Shell Gas, Sitara Chemicals, Pakistan Services and Security Papers, higher by Rs4.50 to Rs9.

Trading volume further shrank to 303m shares from the previous 314m shares as losers maintained a strong lead over the gainers at 211 to 131, with 53 shares holding on to the last levels.

Maple Leaf Cement again came in for active support and rose by 90 paisa at Rs41.40 on 44m shares followed by OGDC, lower by 30 paisa at Rs67.80 on 29m shares, Fauji Cement, firm by 15 paisa at Rs16.15 on 23m shares, Lucky Cement, easy five paisa at Rs42.15 on 19m shares and DG Khan Cement, lower also by five paisa at Rs59.15 on 18m shares.

Other actives were led by TRG Pakistan, higher by Rs1.25 on 17m shares, PTCL, lower by 25 paisa also on 17m shares, PIAC, easy five paisa on 16m shares, MCB, steady five paisa on 11m shares and National Bank, off 65 paisa on 10m shares.

FORWARD COUNTER: Bank Al-Falah attracted selling at the higher levels and fell by 85 paisa at Rs65.70 on 12m shares followed by FF Bin Qasim, lower 30 paisa at Rs21 on 4m shares, PTCL, easy 25 paisa at Rs43.90 on 3m shares, Hub-Power, unchanged at Rs34.50 also on 3m shares and MCB, lower 15 paisa at Rs57.65 on 2m shares. Fauji Fertilizer and PSO also fell by one rupee and Rs1.10 at Rs128 and Rs269.45. Volume fell to 31m shares from the previous 50m shares.

DEFAULTER COS: Biafo Industries and Indus Polyester were again actively traded, higher by 60 paisa at Rs1.20 at Rs14 and 7.05 on 0.518m and 0.645m shares respectively.

BOARD MEETINGS: Nagina Cotton, Ellcot Spinning, Prosperity Weaving, Tata Textiles, Salfi Textiles and Island Textiles, on May 15, Quality Textiles, Macpac Films and Glamour Textiles on May 17, 19, and 22 respectively.