May 10, 2006	Wednesday	Rabi-us-Sani 11, 1427

KARACHI, May 9: The KSE 100-share index on Tuesday plunged by 199 points on active selling in the leading base shares on the oil sector under the lead of OGDC and Pakistan Petroleum but managed to finish well above the session’s lows on late covering purchases at the dips.

Instances of strong selective buying on some of the counters, notably in leading auto shares were not lacking, which in turn allowed the market to maintain a steady posture.

An idea of highly erratic movement may, however, well be had from the fact that the index early touched the highest at 11,854.58 and the lowest at 11,536.00, showing either-way movements of 316 points before ending at 11,576.83 points, off 1.69 per cent.

“Iran’s oil diplomacy seems to have mauled the international oil market after the crude prices fell below the $70 per barrel mark and in turn the local oil sector on the perception that its negative fallout may be tremendous on their earnings,” analysts said.

Banking scrips also turned easy under the lead of National Bank, MCB and Bank of Punjab on profit-selling but Union Bank did not toe their line of action and posted a fresh sharp gain of Rs3.95 at Rs83.25.

Local leading oil shares, notably OGDC, PSO and Pakistan Petroleum, which together hold a weightage of 40 per cent in the index, fell like house of cards. OGDC fell by Rs6.75, Pakistan Petroleum, by Rs13.80 and so did PSO.

The OGDC’s drop to Rs154.60 and at one stage to Rs153.30 reflected leading bears were out to grab its floating stock well before the launch of its GDR on the London Stock Exchange possibly by the next month.

“I don’t think the oil diplomacy could have such negative fallout on the local market but some leading bears made it look so”, says a leading broker, adding “the decline appears to be psychological rather than genuine”.

Some others said bulls could fight back even tomorrow as the current lower levels on the favourites including, oil, cement and bank shares ensure quick capital gains.

Auto shares on the other hand maintained their upward drive on active buying aided by reports of higher earnings and rose further higher under the lead of Indus Motors, Millat Tractors, Honda Atlas Cars and Pak-Suzuki Motors, up by Rs10.30 to Rs13.

Leading gainers were led by AKD Securities, National Refinery, Indus Motors and Pak-Suzuki Motors, which posted gains ranging from Rs9 to Rs13 followed by Premier Sugar, Millat Tractors and Gatron Industries, up by Rs5 to Rs6.40.

Overvalued oil shares led the market fall, major losers being Pakistan Oilfields, Shell Pakistan, Attock Petroleum and Pakistan Petroleum, off Rs7.50 to Rs13.95 followed by IGI, Gillette Pakistan, Unilever Pakistan, Adamjee Insurance and Dawood Hercules, which suffered fall ranging from Rs8.15 to Rs16.30 but largest fall of Rs60 was recorded in Wyeth Pakistan.

Trading volume showed a modest increase at 343m shares from the previous 260m shares but losers held a strong lead over the gainers at 203 to 143, with 47 shares holding on to the last levels.

D.G.Khan Cement topped the list of most actives, up by 75 paisa at Rs123.75 on 59m shares followed by OGDC, off Rs6.75 at Rs154.60 on 33m shares, National Bank, lower Rs3.20 at Rs278 also on 33m shares, PTCL, off 95 paisa at Rs57.45 on 26m shares, Pakistan Petroleum, off Rs13.80 at Rs271.25 on 17m shares and MCB, off Rs3.35 at Rs252.90 on 13m shares.

Other actives were led by Pak PTA, easy five paisa on 20m shares, Lucky Cement, unchanged on 16m shares, Union Bank, higher by Rs3.95 on 14m shares and Bank of Punjab, lower 45 paisa also on 14m shares.

DEFAULTER COS: Crescent Standard Bank came in for renewed selling and was marked down by 10 paisa at Rs5.55 on 0.260m shares followed by Indus Polyester, up by 30 paisa at Rs6.50 on 0.310m shares. Others were modestly traded but mostly on the lower side.

FORWARD COUNTER: OGDC led the list of actives on this counter, off Rs6.55 at Rs155.35 on 19m shares followed by D.G.Khan Cement, up by 75 paisa at Rs124.25 on 16m shares and National Bank, off Rs2.70 at Rs280 on 12m shares.

Pakistan Petroleum followed them sharply lower by Rs13.05 at Rs273.75 on 12m shares and other oil shares on light volumes.