29 January 2005	Saturday	18 Zilhaj 1425

KARACHI, Jan 28: Karachi stocks on Friday received a battering and fell across the board as the long-awaited technical correction made deeper inroads in the bull domain.

KSE 100-share index plunged by 155 points or 2.23 per cent at 6,798 after touching the day's peak level of 6,998, eroding Rs44bn from the market capital.

Stocks plunge by 155 points on heavy selling

KARACHI, Jan 28: The KSE 100-share index on Friday plunged by 155 points on heavy selling in the leading base shares but finished well above the day's lowest bid, signalling that the massively battered bulls are back in the arena.

However, the long overdue technical correction at last manifested itself in a bigger way as the weekend session witnessed the retreat of a bull market, which broke in quick succession many previous records and settled at record highs thanks to general buying and an attractive bait of sell-off of some mega state-owned units.

The selling was across the board and covered the entire list, although overvalued shares were massively hit under the lead of PTCL, OGDC, and many others. The KSE 100-share index finally finished the weekend session around 6,798.01, off 154.81 points or 2.23 percent as compared to 6,952.82 a day earlier.

After having hit its career-best level at 6.999.11,only 0.89 point short of the bull target, it straight plunged by 228 points but managed to recover later on active short-covering in the pivotals. The highest and the lowest was touched at 6,998.35 and 6,722.90 respectively.

"The market could erode another 150 to 200 points," predicts Faisal Abbas a leading stock analyst. "But I don't think the future outlook is that bleak." The current shakeout may well prove a passing phase as a lot of good corporate announcements, notably from the banking and fertilizer sectors are due and could aid the market recovery, he said.

Another leading analyst Zia Javed of WE Financials hold the same view and expressed the hoped that the correction would pave the way for fresh buying after the market shed its extra load.

However, he ruled out the possibility of any major change in the current market stance despite not-too-encouraging news from Balochistan and from the across the Line of Control in Kashmir. But the eventful session was not without some special features both in terms of retreat of the big ones from the career best levels and heavy volumes amid almost near-panic selling from the punters and some upcountry-based investors.

Although bulls are still licking their wounds caused by the massively battered bears, they are planning to resume covering purchases in the leading base shares notably, PTCL, OGDC, PSO, National Bank, MCB, Fauji Fertilizer whose board meeting is due on Jan 31, amid reports of profit of Rs4 billion.

Minus signs dominated the list as most of the shares fell like nine pins. Major losers being Artistic Denim, PSO, Shell Pakistan, Javed Omer, AKD Securities and Parke-Davis, which suffered fall ranging from Rs15 to Rs52.50.Among the actives, PSO and Shell Pakistan were heavy losers, off Rs12.80 and Rs27.40.

Bhanero Textiles, Pakistan Refinery, International Industries, National Foods, Sapphire Fibres, and Nishat Chunian were among the other prominent losers off Rs7 to Rs9.

Some of the leading shares managed to finish higher under the lead of Abbott Lab and Aventis on active support in response to higher dividend followed by Quetta Textiles, Fauji Fertilizer, Ayesha Textiles, Unilever Pakistan, Shakarganj Sugar, Pakistan Engineering, and Arif Habib Securities, up Rs4 to Rs6.

Trading volume rose to 558m shares from the previous 538m shares but losers forced a massive lead over the gainers at 274 to 78, with 33 shares holding on the last levels.

PTCL topped the list of most actives, off Rs2 at Rs64 on 238m shares followed by OGDC, easy Rs1.45 at Rs80.70 on 117m shares, Hub-Power lower Rs1.05 at Rs32.20 on 22m shares, Fauji Fertilizer Bin Qasim, lower 60 paisa at Rs28.50 on 20m shares and PSO, sharply lower by Rs12.80 at Rs305 on 13m shares.

Others were led by National Bank, off Rs2.35 on 12m shares, DG Khan Cement, lower Rs2.70 also on 12m shares, Lucky Cement, easy 85 paisa on 11m shares, Sui Southern Gas, off Rs1.45 on 10m shares and Nishat Mills, lower Rs5.25 on 9m shares.

FORWARD COUNTER: PTCL also beat a hasty retreat in sympathy with its ready counter and was marked down by Rs2.08 at Rs65 on 77m shares followed by OGDC, lower Rs1.54 at Rs81.81 on 21m shares and PPL, off Rs5.50 at Rs131.25 on 14m shares. Their February settlements were also quoted sharply lower.

DEFAULTER COS: Trading on this counter remained relatively slow as investors remained busy in the ready section. Crescent-Standard Bank was, however, an exception, off 90 paisa at Rs13.65 on 0.108m shares. Others were modestly traded mostly on the lower side.

DIVIDEND: Abbott Lab, final 30 per cent, 25 per cent interim already paid plus bonus shares of 20 per cent, Aventis, final cash at the rate of 55 per cent, 20 per cent already paid, Tri-Pack Films, cash 15 per cent.