26 October 2004	Tuesday	11 Ramazan 1425

KARACHI, Oct 25: Stocks on Monday opened on a higher note ahead of board meetings of some leading corporate giants, including PSO and National Bank, but failed to sustain the early run-up on late selling as both the companies showed higher earnings but no interim payouts. The KSE 100-share index posted a fresh rise of 9.80 points at 5,468.12.

But on the other hand, directors of Bank Alfalah came out with an interim bonus shares at the rate of 25 per cent and an identical amount of right shares at a premium of Rs10.

"Investors seem to be in no mood to hold long positions since the beginning of the holy month," analysts said. "They come like a hurricane aided by selective financial support early in the session and leave towards the closing bell, getting away whatever they could."

That is perhaps why after breaching through the barrier of 5,500 points early in the session, the KSE 100-share failed to sustain it on late selling by the same set of operators who supported the market initially.

It finally finished with an extended gain of 9.80 points at 5,468.12 after hitting the lowest and the highest of the day at 5,453.20 and 5,503.94, respectively.

Owing to an expected hedging from the maturing October settlements to the November future contracts during the next couple of sessions, the index's movements could be restricted to the prevailing level, some analysts predict.

After several abortive attempts, the KSE 100-share index during its latest upward drive failed to stay above the crucial level of 5,000 despite a talk of 6,000 in the recent past.

"It now seems to have assumed the role of prestigious point between bulls and bears," brokers said. "While the former want to keep the index above the 5,500 level, the latter don't for its own reasons."

This fight between the big ones has restored a due respectability to the daily volumes, which normally fall sharply throughout the holy month of Ramazan.

The trading on the market was dominated by an active two-way activity in the share of OGDCL followed by reports of grant of a new exploration licence in the Sindh oil belt. At times it took the entire market along with it to new highs.

But on the other hand investors were a bit disappointed by the quarterly results of leading shares, PSO and National Bank, whose boards met here on Monday but did not declare any interim payout.

However, a quarterly interim bonus shares and right shares at a premium by Bank Alfalah generated a lot of interest at the dips in it or other banks shares, notably Askari Bank, Shell Pakistan, Millat Tractors and Soneri Bank whose board meetings are due on Tuesday.

Leading gainers were led by Millat Tractors, Clariant Pakistan, Treet Corporation and Nestle MilkPak, which posted gains ranging from Rs9 to Rs15, the largest rise of Rs24.95 being in Nestle MilkPak. They were followed by Askari Bank, Babari Cotton, Valika Art Fabrics, International Industries, HinoPak Motors, Abbott Lab, and AKD Securities, up by Rs3 to Rs4.55.

Leading losers included Grays of Cambridge, off Rs14 followed by Exide Battery, Sapphire Fibre, Sitara Chemicals, Pakistan Engineering, Javed Omer and Pakistan Refinery, off Rs3.85 to Rs6.10.

Trading volume showed a sharp rise at 226m shares as compared to 117m shares at the last weekend, while losers maintained a fair lead over gainers at 176 to 112, with 40 shares holding on to the last levels.

The most active list was topped by OGDCL, higher by 85 paisa at Rs67.20 on 55m shares followed by National Bank, up 65 paisa at Rs71.20 on the strength of higher earnings on 32m shares, Askari Bank, sharply higher by Rs3.05 on expectations of good dividend in Tuesday's board meeting at Rs90.25 on 23m shares, Chakwal Cement steady by five paisa at Rs8.95 on 15m shares and PTCL, lower 35 paisa at Rs40.55 on 12m shares.

Other actives were led by Bank Alfalah, higher by Rs1.80 on 10m shares, PSO, off Rs1.55 on 8m shares, Fauji Fertiliser Bin Qasim, lower 45 paisa On 6m shares, Nishat Mills, easy five paisa also on 6m shares and D.G. Khan Cement, lower 65 paisa on 5m shares.

FORWARD COUNTER: OGDCL also led the list of actives on the cleared list and was marked higher by 61 paisa at Rs67.16 on 14m shares followed by PPL, off 36 paisa at Rs120.99 on 11m shares and PPL, November contracts, up 40 paisa at Rs121.75 on 5m shares. Engro Chemical and PSO were leading among the losers, off Rs1.20 and Rs1.80 at Rs99.00 and Rs262.70, respectively, on modest volume.

DEFAULTER COS: Asset Investment Bank came in for strong support at the lower level and rose by 65 paisa at Rs5.90 on 0.892m shares followed by Crescent-Standard Bank, easy by 35 paisa at Rs9.80 on 0.169m shares. Others were modestly traded.

BOARD MEETINGS: The board meetings of Millat Tractors, Askari Bank, Shell Pakistan, PIAC and Bank of Punjab will be held on Oct 26.