24 July 2004	Saturday	06 Jamadi-us-Saani 1425

KARACHI, July 23: Stocks finished the weekend session on an easy note as leading investors were conspicuous by their absence but there was no immediate positive or negative impact of the new Trade Policy on the share business.

The KSE 100-share index shed another 16.74 points at 5,409.37. However, the textile sector is expected to respond positively to the new policy by the next week despite problem of higher lint prices as most of the incentives are aimed at to give it the needed boost on the export front.

A sharp decline in the turnover figure, however, reflects that investors were in a pre-holiday mood and did not actively participate in the proceedings. Some others were studying in details the new Trade Policy and its likely impact on the market after trading resumes on Monday.

"The sectors, which are to benefit from the incentives could attract a lot of covering purchases next week as leading investors are in the process of making new portfolios under the new policy," says an analyst.

The KSE 100-share index finished with an extended fall of 16.74 points at 5,409.37 as compared to 5,426.11, although some of the leading base shares managed to finish modestly higher under the lead of OGDCL.

That it did not brake the barrier of 5,400 indicates that it will resume its upward drive next week to its nearest target of 5,500 and then a fresh onward drive, analysts said.

There was no immediate positive impact of the Trade Policy aiming at giving a major boost to the export sector on the stock trading but those sectors that are its direct beneficiary are sure to react positively by the next week, brokers said.

"The textile sector will be the chief beneficiary as it will enable it to face post-WTO challenges on the export from the next year," they said, adding "liberalization of the import regime will also give the needed impetus to the industrial sector."

The export target of $13.7 billion set for the fiscal year 2004-05 is not that ambitious in the backdrop of recent diversification of the export trade and exploitation of the new African markets, they said.

"The trade gap of $3 billion may not be that tall and could be bridged owing to declining trend in oil imports and an increase in the export of untraditional items," they added.

With the buying euphoria associated with the Pakistan Petroleum IPO over, investors are expected to be back in the market on Monday. But a massive amount of about Rs20 billion invested in it will take about two weeks for replouging in the share business.

Although losing shares dominated the list, some of the leading shares managed to put on fresh gains under the lead of Ferozsons Lab, Clariant Pakistan, Colgate Pakistan, Jahangir Siddiqui Bank, and Grays of Cambridge, which posted gains ranging from Rs5 to Rs9, followed by Arif Habib Securities, Al-Abbas Sugar, Lakson Tobacco, Atlas Battery, Dewan Khalid Textiles and Glaxo-SKF, up by Rs2 to Rs4.65.

Losses on the other hand were fractional barring PSO, Gatron Industries, National Refinery, EFU Life Insurance, Dawood Hercules, which fell by Rs2.20 to Rs4.05 but largest declines were noted in International Industries, Javed Omer and Fateh Textiles, off Rs7.40 to Rs9.99 and 16.95, respectively.

Trading volume fell to 164m shares from the previous 220m shares as losers maintained a fair lead over gainers at 156 to 103, with 42 shares holding on to the last levels.

Bank of Punjab led the list of actives, up 30 paisa on reports that it will start crop insurance on 35m shares followed by F.F. Bin Qasim, higher by 70 paisa at Rs19.70 on 27m shares, National Bank, lower 55 paisa at Rs71.35 on 12m shares, PTCL, easy, 15 paisa at Rs.44.15 on 11m shares and OGDCL, lower 25 paisa at Rs66.60 on 8m shares.

Other actives were led by Askari Bank, up 40 paisa on 6m shares, Lucky Cement, lower 25 paisa on 5m shares, D.G. Khan Cement easy 35 paisa also on 5m shares, Bank Alfalah, lower five paisa on 5m shares and ICI Pakistan, off Rs1.35 also on 5m shares.

FORWARD COUNTER: Pakistan Petroleum again led the list of actives, up 35 paisa at Rs112.95 on 9m shares followed by F.F. Bin Qasim, higher by 60 paisa at Rs19.70 on 4m shares, PTCL, unchanged at Rs44.25 on 2m shares, PSO and National Bank, off Rs1.90 and 55 paisa, respectively, on 2m shares each.

DEFAULTER COS: Trading on this counter remained dull as investors stayed on the sidelines because of weekend considerations. Stray business was, however, noted on some counters mostly on the lower side.