July 5, 2005	Tuesday	Jumadi-ul-Awwal 27, 1426

KARACHI, July 4: Stocks on Monday failed to sustain earlier run-up and finished reacted on mid-session profit-selling amid conflicting reports about the extension in phasing out of Carry Over Trade (COT).

Leading investors kept, most of the time, to the sidelines apparently awaiting an official word on the badla-related rumours and did not actively participate in the proceedings. As a result, trading volume fell to a six-month low level as investors did not pick up blue chips even at the falling prices. Incidentally, the total is equivalent to single-session tally of an active scrip, such PTCL, or OGDC.

Stocks, early resumed trading on a firm note boosted partly by a higher dividend of Rs3.30 per unit by the National Investment Trust (NIT) and partly to reports to extension of cut-off date of Badla financing up to Dec 31, 2005.

The market sentiment in part was also influenced favourably by reports that the badla and bank margin financing will go together by the end of the current year as by that time the switch over from the decades-old mode of financing to the modern one will be smooth and orderly.

After rising by over 20 points in the morning, the KSE 100-share index finally finished with a fall of 56.05 points at 7,408.55 as compared to 7,464.60 at the last weekend, reflecting the weakness of leading base shares, notably PTCL, OGDC and PSO.

The earlier run-up was attributed to badla-related reports news but as the reports were not confirmed by the official sources about the extension of cut-off date, investors took profit at the inflated levels.

Barring Shell Pakistan, which was in active demand in post-oil price hike trading, others including the PSO, whose inventory gains are said to be massive stayed easy perhaps owing to Saturday’s fire in its lubricant plant and reports of 25 per cent losses.

Analysts said National Bank, Faysal Bank and Bank of Punjab, which have a massive portfolio holding in the NIT should have responded in bullish way to the NIT dividend announcement of Rs3.30 per unit, they too followed the market’s general line of action and fell.

“New account buying must be around,” they said adding “conflicting news about margin-financing do not allow them to take long positions and that is perhaps why leading investors are playing on both sides of the fence.”

With the repair work on the damaged optic fibre cable well in progress, and business links with the outside world are partially restored through alternative system, the market is expected to behave orderly during the coming sessions, they hoped.

Shell Pakistan maintained its upward drive on inventory gains, up by Rs6.25 followed by Packages, higher by Rs6. Other good gainers included Javed Omer, NP Spinning, Dadex Eternit, Exide Battery, Murree Brewery, Wyeth Pakistan, and Berger Paints, up Rs2 to Rs5.

Losers included Gatron Indus-tries and Mari Gas, off Rs6 and Rs9.60 followed by Bank of Punjab, Crescent Steel, Attock Refinery, Atlas Battery, Pakistan Services, PSO, and Arif Habib Securities, off Rs2 to Rs5.

Trading volume shrank to a modest proportion in the absence of institutional traders and fell to 103m shares from the previous 159m shares as losers maintained a strong lead over the gainers at 170 to 95, with

35 shares holding on to the last levels.

PTCL led the list of actives, off Rs1.60 at Rs64.30 on 26m shares, followed by National Bank, lower Rs2 at Rs107.35 on 18m shares, OGDC, easy 75 paisa at Rs105.30 on 16m shares, Pakistan Petroleum, up Rs1.55 at Rs216.05 on 6m shares, MCB, higher by Rs1.20 at Rs80.30 on 5m shares and Bank of Punjab, off Rs3.20 at Rs79.75 on 3m shares.

Other prominent losers were led by PSO, off 3.75 on 5m shares, DG Khan Cement, rise by 15 paisa on 4m shares, Pakistan Oilfields, lower 25 paisa on 3m shares and Kot Addu Power, up 15 paisa also on 3m shares.

FORWARD COUNTER: Barring Pakistan Petroleum, which managed to finish higher by Rs1.40 on active short-covering and ended at Rs219.10 up Rs1.40 on 8m shares, all others speculative issues fell under the lead of PSO, off Rs3.75 at Rs386 on 4m shares.

PTCL fell by Rs1.55 at Rs65.10 on 13m shares, OGDC, easy 80 paisa at Rs106.55 on 7m shares and National Bank, off Rs2 at Rs108.65 on 5m shares.

DEFAULTER COS: Active trading was witnessed on this counter as more shares came in for alternate bouts of buying and selling amid fractional price changes.

Dandot Cement and Bahawalpur Textiles were leading among the losers, off 90 paisa and one rupee at Rs8.10 and Rs8 on modest turnover, while Uqab Breeding and some others rose by 30 to 50 paisa.

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