16 October 2004	Saturday	01 Ramazan 1425

KARACHI, Oct 15: Stocks on Friday fell from the recent highs as investors indulged in profit-selling almost on all the counters but selling was well-absorbed at the decline.

Owing to the persistent run-up the market has been in an overbought position and needed correction, which came in the form of weekend profit taking. Trading was thin as only morning session was held and afternoon session was suspended ahead of the possible advent of the holy month of Ramazan from Saturday.

After last about four weeks sustained run-up, the market has reached an overbought position and needed a technical correction in an extended bull-run caused by some positive developments on the financial front and that came in for weekend selling.

The KSE 100-share index reacted from the week's peak level of 5,469.62 points to 5,433.48, off 36.14 as most of the leading base shares suffered pruning at the higher levels.

Some leading analysts are predicting a fresh pruning of about 150 points in the index during the next week but "I don't think bears have the guts and the courage to go beyond certain pre-determined targets", says an analyst.

"The market is well on its way to set new records both in terms of index levels and daily turnover figure", he predicts "just with one stroke the central bank has changed the future market outlook".

The central bank ban on credits other than house building by individuals and bona fide housing companies has pulled the market out of the financial crisis as they are now finding their way back into the share business from the real estate.

"Technical corrections after each rise strengthen the market base rather than working against its positive fundamentals," brokers said adding "it is an essential part of the share business."

However, instances of weak spots on a number of counters are not wanting as a section of investors took profits at the inflated levels both in the energy and bank shares, which have been in strong demand all through the last week and needed correction.

While market leaders, notably OGDC, Pakistan Petroleum, PTCL and some others fully absorbed the negative fall-out of the weekend selling, other current favourites, notably Bank of Punjab, National Bank, Fauji Fertilizer Bin Qasim, Nishat Mills and some others fell from the previous highs.

Some of the low-priced hereto neglected issues, notably in the energy sector came in for active short-covering at the lower levels and finished with good gains and so did Fauji Cement and some others.

Leading gainers were led by Pak Elektron, Nishat Chunian, Valika Fabrics, Allwin Engineering, Unilever Pakistan and Lakson Tobacco, which posted gains ranging from Rs3.50 to Rs10.

Prominent losers included Cherat Papers, Atlss Battery, Clover Pakistan, Arif Habib Securities, Aventis and Javed Omer, which suffered fall ranging from Rs3 to Rs10. Trading volume fell to 135m shares owing to one session as losers forced a strong lead over the gainers at 185 to 88, with 33 shares holding on to the last levels.

Pak PTA led the list of actives, off 80 paisa at Rs12.35 on 20m shares followed by Fauji Cement, up by 45 paisa at Rs16.30 on 18m shares, National Bank, lower 60 paisa at Rs71.10 on 9m shares, Nishat Mills, sharply lower by Rs1.15 at Rs51.05 on 7m shares and Fauji Fertilizer Bin Qasim, easy 40 paisa at Rs20.80 on 6m shares.

Other actives included Japan Power, steady 10 paisa on 6m shares, MCB, off Rs1.70 also on 6m shares, Bank of Punjab, lower 95 paisa on 5m shares, PICIC Growth Fund, off 60 paisa also on 5m shares, Pakistan Oilfields, lower Rs1.75 on 5m shares.

FORWARD COUNTER: OGDC came in for active selling and fell by 45 paisa at Rs66.65 on 23m shares followed by PPL, off Rs1.10 at Rs123 on 12m shares and D.G.Khan Cement, lower 40 paisa at Rs52.25 on 5m shares.

Other speculative issues also followed the lead of the ready section and fell by five paisa for PTCL at Rs40.55 on 4m shares and Pakistan Oilfields, off Rs1.60 at Rs210.90 on 2m shares. ICI Pakistan, which fell by Rs1.15 was among the other major losers.

DEFAULTER COUNTER: Trading on this counter was relatively slow owing partly to weekend considerations. As a result, price changes were fractional and mostly on the lower side. Lafayette was another exception, which came in for modest support at the previous level and ended unchanged at Rs3.50 on 0.170m shares.

BOARD MEETINGS: Agriautos, on Oct 18, Pakistan PTA, Pakistan Papersack, Pakistan Refinery, Equity Modaraba, Pakistan House International, Security Leasing, Meezan Islamic Fund, Al-Meezan Mutual Fund, on Oct 21, PNSC, Syed Match, on Oct 22, Safa Textiles, IGI Insurance, on Oct 25, Javedan Cement and Security Papers, on Oct 26.