05 November 2004	Friday	21 Ramazan 1425

KARACHI, Nov 4: Stocks on Thursday were overwhelmed by its technical demands after the Americans again voted President Bush for a second term, but the market reaction to the post-election scenario was not that encouraging.

However, the Bush factor would prevail in the final analysis as the market settled down after meeting its technical demands and investors hoped for a positive future share business outlook, brokers said.

After an initial rise in response to President Bush's re-election, the market finished well below the day's highs on badla-related selling by weak-holders and other investors.

The KSE 100-share index after rising early by 46 points, ended with a fractional fall of 3.79 points at 5,347.72 as compared to 5,351.51 a day earlier, reflecting the weakness of leading base shares.

Owing to upcoming Eid holidays, the clearing in the carryover market (badla market) will be of six days instead of one day, which triggered sell-stops from the weak-holders and day-traders whose holding capacity is limited. Moreover, no one of them is inclined to take a risk for a week as anything adverse could happen in between.

The extended badla seemed to have taken away all the positive factors along with it, which could have triggered a massive price flare-up at least on selected counters, some brokers said, adding that "it overshadowed the Bush victory."

"The Bush factor is there, which is more positive than many could imagine at this stage," analysts said. "Most of the leading punters are eyeing an index level of 5,600 after Eid holidays on short-term basis."

"I think the market could add another 200 or 250 points as the post-US election buying euphoria is still there to manifest it," says a leading stock analyst. "What could well mean to the Bush rally and heating up of the local political scenario after Eid is pretty difficult to assess at this stage."

Some positive factors, including higher cement sales and 55 per cent increase in is export and reports of higher earnings by some of the other sectors, including banks, energy and textiles are expected to keep the investors in a positive frame of mind, brokers predict.

Reports that Pakistan Oilfields and Attock Refinery would bid for a 51 per cent government stake in National Refinery triggered a lot of short-covering in it, which at one stage assumed the role of trend-setter in the energy sector, brokers said.

Minus signs dominated the list under the lead of Nestle MilkPak, Lakson Tobacco and Grays of Cambridge, which suffered fall ranging from Rs4 to Rs13. They were followed by Pakistan Refinery, Honda Atlas, Clariant Pakistan, Security Papers, Clover Pakistan and Shezan International, off Rs3.15 to Rs6.25.

Some of the leading shares managed to put fresh gains on stray support, notable among them being Berger Paints, Mitchell's Fruits, Valika Fabrics, National Refinery, Artistic Denim and Unilever Pakistan, up Rs2.95 to Rs25.

Trading volume fell to 166m shares from the previous 258m shares as losers held a modest lead over the gainers at 148 to 126, with 38 shares holding on to the last levels.

The most active list was topped by PTCL, lower 50 paisa at Rs37.85 on 21m shares followed by Bank of Punjab, higher by 85 paisa at Rs58.75 on 19m shares, OGDC, up 25 paisa at Rs66.05 on 15m shares, National Bank, firm by 65 paisa at Rs71.40 and Nishat Mills, up one rupee at Rs51.75 on 8m shares.

Other actives were led by PSO, up one rupee on 7m shares, D.G. Khan Cement, firm by 65 paisa, Fauji Fertilizer Bin Qasim, steady by 10 paisa, Sui Northern Gas, up 45 paisa and PICIC Growth Fund, higher 85 paisa all on 7m shares.

FORWARD COUNTER: PTCL came in for fresh selling and was marked down by 55 paisa at Rs38 on 10m shares followed by PPL, up 80 paisa at Rs117.60 on 9m shares and OGDC, firm by 15 paisa at Rs66.40 on 4m shares.

Bank of Punjab followed them, higher by Rs1.20 at Rs58.95 on 4m shares and Sui Northern Gas, off Rs1.60 at Rs49.50 on 3m shares. Some others were also actively traded on the higher side.

DEFAULTER COS: Crescent Spinning and Crescent-Standard bank came in for stray selling and both fell by 10 and 45 paisa at Rs9.85 and 3.05 on 0.139 and 0.119m shares, respectively.

BOARD MEETINGS: Zeal-Pak Cement on Nov 8; Pakistan Industrial Credit and Investment Corporation on Nov 10; and Japan Power on Nov 11.