February 15, 2006	Wednesday	Muharram 16, 1427

KARACHI, Feb 14: The KSE 100-share index on Tuesday plunged by 298 points or 2.6 per cent on massive selling in the leading base shares, eroding Rs81 billon from the market capital but there were buyers at the dips.

Bulk of the selling was, what analysts called a long overdue technical correction, confined to OGDC, PTCL and National Bank and some others, which together hold a weightage of 50 per cent in it.

All the leading shares finished at their lower circuit breakers on near-panic selling triggered, apparently by reports that heavy outstanding positions in futures could well mean anything to a buoyant market in the coming sessions.

It finally ended with a heavy fall of 297.94 points or 2.6 per cent, wiping out Rs81 billion at Rs3,126 billion. Trading volume soared to the year’s peak level of 737m shares, reflecting the panic among the investors and the consequent hasty selling. The day’s lowest and the highest were touched at 10,885.48 and 11,361.49 points, respectively.

The market’s volatile performance is also well-reflected in the either-way movements of the index, which after opening 150 points up, fell by 300 points but recovered from the early lows.

An interim dividend at the rate of 80 per cent or Rs8 per share by Shell Pakistan also prompted selling in this and other leading oil shares as investors apparently were eyeing bonus shares also. Its share value fell by Rs28.10 at Rs707.90.

The index is passing through a consolidation phase before resuming its upward drive to its next target being in a highly over-bought position owing to persistent buying in the pivotals.

Some of the higher interim dividends are still to come as their board meetings are due during the current and the next week, which could keep investors in an optimistic mood, brokers said.

But some others said the market is still in an over-bought position and could shed another 100 or more points before rising to its new chart levels. However, one thing appears to be certain that bears may not be in a position to reverse the current run-up or blunt the investors’ enthusiasm for the share business.

“Massive outstanding positions of Rs19 in future contracts seem to be the chief worry of the investors and brokerage houses,” analysts said adding ”the mid-session active selling was caused by this perception to keep forward positions in place.”

Leading gainers were led by Pakistan Oilfields and Rafhan Maize, up Rs21 and 37, followed by Nishat Chunian, Mustehkam Cement, Mari Gas, Sanofi-Aventis, Berger Paints, Clariant Pakistan, Security Papers, and Ferozsons Lab, up Rs4.80 to 11.20.

Prominent losers were led by Shell Pakistan and Siemens Pakistan, off Rs28.10 and 56.95 respectively. Other notable losers included Adamjee Insurance, Fazal Textiles, IGI Insurance, Nishat Mills, OGDC, HinoPak, Suzuki Motors, Dawood Hercules and Colgate Pakistan off Rs7 to 13.

Trading volume swelled to 737.382m shares owing to massive selling in OGDC, PTCL and Pakistan Petroleum, while losers maintained a strong lead over the gainers at 260 to 106, with 45 shares holding on to the last levels.

OGDC topped the list of most actives, sharply lower by Rs7.40 at Rs141.40 on 140m shares followed by PTCL, lower Rs1.70 at Rs66.35 on 82m shares, Pakistan Petroleum, easy 30 paisa at Rs245.50 on 51m shares, National Bank, off Rs12.90 at Rs257.40 on 23m shares and Pakistan Oilfields, up Rs21 at Rs.498 on 31m shares. PSO also rose by Rs2.60 at Rs416.10 on 18m shares.

Other actives included Bank of Punjab, off Rs4.55 on 45m shares, D.G.Khan Cement, lower Rs3.25 on 45m shares, Maple Leaf Cement, lower Rs2.45 on 37m shares, and Fauji Cement easy 20 paisa on 32m shares.

DEFAULTER COS: Service Fabrics again came in for strong support and was quoted higher by one rupee at Rs4.30 on 2.587m shares followed by Dandot Cement, lower 55 paisa at Rs12.25 on 0.277m shares and Crescent Standard Bank, lower 35 paisa at Rs11.95 on 0.185m shares. Others fell fractionally in sympathy with the ready section.