February 1, 2006	Wednesday	Muharram 2, 1427

KARACHI, Jan 31: Stocks on Tuesday suffered modest pruning on the oil and fertilizer counters at the highly inflated levels but active buying at the dips averted major fall both in terms of value and index level, analysts said.

After earlier having hit its all-time peak level at 10,612.00, the KSE 100-share index reacted as leading punters indulged in selling, pushing it down to close with a modest decline of 3.69 points at 10,524.16. The session’s low was hit at 10,501.51.

Leading base shares in the oil sector, notably the weakness of the OGDC worked against the underlying sentiment after active follow-up support in bank shares, notably National Bank, MCB, which finished with fresh limit gains failed to prop it.

Final payouts by the urea giants were received mixed response. Dawood Hercules responded bullishly to final cash payout of 25 per cent plus bonus shares of 15 per cent and up by Rs21.30, Engro and Fauji Fertilizer were marked down by Rs6.95 and Rs7.15 on post-dividend selling.

Modest decline in the index reflected that the grip of bulls on the price line, notably on the leading bank and base shares is terribly tight and will not allow it to fall below their pre-determined levels at least for the near-term, analysts said.

But some of the leading investors are not lured by the massive capital gains just in a session and are judiciously adjusting their portfolios to avert any major fall in a highly overbought market, they added.

“The market needed a technical breather after having risen sharply higher during the last six consecutive sessions though correction came but was too modest to cause panic among the punters or investors”, brokers said.

“Sanity seems to have partially returned to the cement sector but panic buying in bank and some other pivotals seems to be in no mood to have some rethinking on the price levels,” some others said.

No one could deny the fact that bank earnings for the year ended Dec 31, 2005 have touched new highs so could be payouts or bonus shares but the price-return ratio should have some relevance sans speculation, they added.

Leading gainers were led by Dawood Hercules and Nestle Pakistan, up Rs21.30 and Rs39, followed by Jahangir Siddiqui Fund, Central Insurance, Glaxo-SKF, Clariant Pakistan, Noon Pakistan, Noon Pakistan, HinoPak Motors, MCB, Pakistan Cables and Treet Corporation, up by Rs7.60 to Rs15.95.

Sanofi-Aventis and Unilever Pakistan were leading among the losers, off Rs16.20 and Rs59. Other prominent losers were led by Attock Refinery, PSO, Fauji Fertilizer, Engro Chemical, Gillette Pakistan, Shell Pakistan and Arif Habib Securities, off Rs6.95 to Rs11.05.

Trading volume rose further to 655m shares from the previous 628m shares but losers managed to force a comfortable lead over the gainers at 218 to 179, with 29 shares holding on to the last levels.

Bank of Punjab led the list of actives, up by Rs3.95 at Rs124.80 on 67m shares followed by Fauji Fertilizer Bin Qasim, lower 15 paisa at Rs41.65 on 67m shares, D.G.Khan Cement, firm by Rs1.35 at Rs127 on 65m shares, National Bank, higher by Rs8.95 at Rs254.90 on 58m shares, MCB, up by Rs9.95 at Rs209.75 on 41m shares and KESC, steady 35 paisa at Rs12.90 on 36m shares and Pakistan Petroleum, higher by Rs3.35 at Rs220.40.

Other actives include PTCL, higher by 20 paisa at Rs65.35 on 25m shares, Dewan Salman, up by Re1 on 22m shares and Nishat Mills, easy 10 paisa on 22m shares.

FORWARD COUNTER: National Bank led the list of most actives, higher by Rs9.15 at Rs258 on 19m shares, followed by Fauji Fertilizer Bin Qasim, easy 25 paisa at Rs42.10 on 17m shares and Pakistan Petroleum, higher by Rs2.70 at Rs223.15 on 15m shares.

Other actives included Bank of Punjab, higher by Rs3.55 at Rs126.30 on 14m shares, D.G.Khan Cement, higher by Rs1.55 at Rs128.65 on 11m shares and fertilizer shares also rose amid light turnover.

DEFAULTER COS: Trading on this counter was relatively slow in the absence of strong demand and barring Ahmed Spinning, which rose by Re1 at Rs22, other price changes were fractional amid light volume.

D.G. Khan Cement, Engro Chemical Pakistan, cash 50 per cent, interim 60 per cent already paid, right shares at the rate of 80 per cent, Fauji Fertilizer, final cash 22.5 per cent and Dawood Hercules final cash 25 per cent and bonus shares of 15 per cent.