14 May 2004	Friday	23 Rabi-ul-Awwal 1425

KARACHI, May 13: Stocks on Thursday resisted fresh fall as financial support figured prominently on a number of counters, but future outlook appears uncertain owing to defeat of the ruling Indian elite in the elections.

"I fear a negative fallout of Indian election upsets in the coming sessions amid fears of external policy changes by the new government," says a leading analyst. "The peace initiatives may not be reversed, but some new demands may be attached to them."

After falling 200 points or four per cent since early week on active selling triggered by a combination of negative news from the political front, the KSE index recovered about 44.35 points at 5,398.50 as compared to 5,354.15 a day earlier. The recovery appears to be too feeble to put the market back on the rails.

The market capital also rose by Rs11.071bn at Rs1,449.736 as against Wednesday's Rs1,438.665, reflecting the strength of PTCL, OGDCL and PSO, and some of the heavily-capitalized shares.

Incidentally, it missed the target of 5,400 index level after having breached through it and 5,500 during the last couple of sessions and the consistency in the financial support.

Apart from the cement sector, which provided bulls the much-needed launching pad on road to recovery, what seemed to have given a credence to a feeble rally was massive buying in the pivotals such as OGDCL, PSO, Pakistan Oilfields and some others.

The unification of all factions of the Pakistan Muslim League, a party which founded Pakistan some 56 years back, could lend needed support to the ruling elite, but it may hardly be considered as a bullish factor, brokers said, adding "the market's strength lies somewhere else."

"Many may disagree, the Indian election factor is there," says a leading stock analyst. "What worries investors here is the perception that any upset in the current political setup could derail the current peace process."

The Friday session could be very crucial for the future direction of the market as by that time final outcome of the Indian elections and the winning party will be known on which the India-Pakistan relations will be based.

Plus signs forced a comfortable lead over the minus ones, leading gainers being Dawood Hercules, Sitara Chemical, Pakistan Oilfields, Packages, Grays of Cambridge and Javed Omer, up by Rs5 to Rs15.50. The largest rise of Rs40.40 was noted in Siemens Pakistan.

Other good gainers included New Jubilee Insurance, Adamjee Insurance and PSO, which recovered Rs3.45 to Rs5. Losers were led by Atlas Honda, Atlas Battery, Island Textiles, Aventis, Nestle MilkPak, Unilever Pakistan and Rafhan Maize Products, which suffered fall ranging from Rs3 to Rs18.

Trading volume fell to 352.247m shares from the previous 376m shares as gainers held at lead over the losers at 171 to 153, with 41 shares holding on to the last levels.

OGDCL topped the list of actives, up 65 paisa at Rs67.15 on 40m shares followed by Fauji Cement, higher by 55 paisa at Rs16.20 also on 40m shares, Maple Leaf Cement, sharply higher by Rs1.65 at Rs43.30 on 38m shares, D.G. Khan Cement, up Rs1.90 at Rs58.50 on 34m shares, PTCL, up 45 paisa at Rs43.70 on 20m shares, and National Bank, up 85 paisa at Rs68 on 16m shares.

Other actives were led by FF Bin Qasim Fertilizer, firm 15 paisa on 18m shares, Pakland Cement, up Rs1.50 on 11m shares and Nishat Mills, higher 80 paisa on 9m shares.

FORWARD COUNTER: Bank Al-Falah again led the list of actives, easy 10 paisa at Rs64.45 on 10m shares followed by PTCL, higher by 55 paisa at Rs43.85 on 7m shares, Hub-Power, firm by 45 paisa at Rs34.40 on 5m shares, FF Bin Qasim, easy five paisa at Rs20.15 also on 5m shares and PSO, sharply higher by Rs2.55 at Rs267.20 on 4m shares.

DEFAULTER COS: Trading activity on this counter was relatively slow in the absence of leading investors. Price changes as well turnover figures were on the lower side of the daily average.

Biafo Industries came in for modest support and rose 20 paisa at Rs13.45 on 0.184m shares and Quice Food, higher 90 paisa at Rs3.90 on 0.148m shares.

DIVIDEND: BOC Pakistan, interim at the rate of 30 per cent for the year ended March 31, 2004.

BOARD MEETINGS: Ghandhara Nissan Diesel on May 14; Allawasaya Textiles and Ideal Spinning on May 17 and 21, respectively.