March 30, 2006	Thursday	Safar 29, 1427

KARACHI, March 29: Shares on the Karachi stock market on Wednesday failed to sustain the early strong run-up as some of the leading investors indulged in hasty selling to cash in on the available margin of profits, but the underlying sentiment remained fairly steady. The KSE 100-share index fell 35.07 points at 11,414.37.

The market appeared to be, what analysts called, passing through a moping up operation above the index level of 11,000 and once it is over the trading is expected to be normal, with leading oil, cement and bank shares providing the needed upward push at the current lower levels.

The traded volume was maintained on the higher side, the interesting feature was that unlike the previous sessions there was no massive activity in any of the shares but all the actives were about evenly traded, reflecting the judicious spread of the buying interest.

The KSE 100-share index ended with a modest decline of 35.07 points at 11,414.37 as compared to 11,449.44 a day earlier, reflecting the weakness of OGDC, Pakistan Petroleum and PTCL. During the session it showed a massive either-way movement of 256 points.

Early in the session, it soared to the session’s high of 11,569 on active support in response to positive news from the privatization front, notably sell-off of PSO, NIT, OGDC, Pakistan Petroleum in an effort to curtail state’s stake in them. A sustained bull-run fuelled by strong covering purchases followed but late selling allowed most of the blue chips to finish with clipped gains.

“The market appears to be in search of a direction beyond the index level of 11,500 points but stiff resistance by the bears at each rise is intercepted,” says a leading analyst. “It could resume its upward drive beyond this level after the end of the current grim battle between the bulls and the bears.”

Investors are in the process of building-up new portfolios after having liquidating long positions on the overvalued counters to some low-priced ones, which ensure quick capital gains.

But some others said the high volatility of the leading oil shares, notably OGDC, Pakistan Petroleum and inconsistent behaviour of PTCL and some other market trend-setters is chief reason behind the uneven price movements.

However, active fresh buying in the leading banks, notably MCB, Bank of Punjab and National Bank and D.G. Khan Cement did not allow the market to fall below the recently established higher levels beyond the index level of 11,000 points.

The market also appeared to be partially weighed down by roll-over of positions in the March contract but as there were no reports of any clearing problem, sanity is expected to return to it possibly by tomorrow, brokers said.

MCB and Arif Habib Securities were among the top gainers, up Rs10.90 and 14.95, followed by Adamjee Insurance, Nestle Pakistan, Bata Pakistan, Premier Sugar and International Industries, which also posted gains ranging from Rs4 to 7.

Attock Petroleum and Gillette Pakistan fell by Rs10 each. Other notable losers included EFU Life Insurance, Mehmood Textiles, Pakistan Engineering, Millat Tractors and Shell Gas, off by Rs3.10 to 9.

Trading volume rose to 421m shares from the previous 408m shares as gainers held a modest lead over the losers after two lean sessions at 164 to 141, with 55 shares holding on to the last levels.

D.G.Khan Cement topped the list of actively traded session, up Rs1.55 at Rs154.45 on 67m shares followed by OGDC, lower Rs2.05 at Rs155 on 56m shares, National Bank, easy 75 paisa at Rs284.10 on 41m shares, Lucky Cement, off Rs1.10 at Rs122.90 on 36m shares, MCB, sharply higher by Rs10.90 at Rs229.85 on 34m shares, PTCL, lower Rs1.10 at Rs65.60 on 14m shares and Pakistan Petroleum, off Rs2 at Rs272 also on 14m shares.

Other actives were led by Fauji Cement, lower 40 paisa on 21m shares, Fauji Fertiliser Bin Qasim, easy 90 paisa on 14m shares and Bank of Punjab, up 90 paisa on 13m shares.

FORWARD COUNTER: OGDC led the list of actives, off Rs2.20 at Rs155.25 on 12m shares, followed by National Bank, easy 34 paisa at Rs284.90 on 9m shares and D.G.Khan April settlement, up 30 paisa at Rs133.10. Some others also moved either-way amid light volume.

DEFAULTER COS: Prices also modestly eased on this counter on stray selling under the lead of Quice Foods, lower 70 paisa at Rs3.20 on 0.494m shares followed by Metropolitan Steel, easy by 60 paisa at Rs20 on 0.110m shares, while Crescent Standard Bank, was held unchanged at Rs9 on 0.187m shares.

DIVIDEND: Security Investment Bank, cash 10pc, bonus shares 15pc, Azgard-9, cash 15pc.

BOARD MEETINGS: Javedan Cement, on March 30, Ghandhara Industries, on April 1, PIAC, Crescent Steel, Mubarak Textiles, Colony Textiles, and Service Industries, on April 3, Crescent Star Insurance, and International Multi-Leasing, on April 4, and Dynea Pakistan on April 8.