May 17, 2006	Wednesday	Rabi-us-Sani 18, 1427

KARACHI, May 16: The KSE 100-share index on Tuesday breached through the crucial psychological barrier of 11,000, shedding another 390 points, but analysts said it could be the last bear onslaught as basic fundamentals were not that weak and bulls had the will and finances to fight back.

The last two sessions’ massive decline of seven per cent had made share value more attractive and only fools could miss an attractive bait of instant capital gains, they said.

But after a promising start, stocks plunged by another 3.51 per cent or 390 points on renewed panic selling amid conflicting negative rumours, including selling of leveraged holdings by leading punters followed by a rebound staged by the Dubai share market after the recent crash.

“But what seems to have created panic like conditions after an encouraging opening was rumours about a financial mishap by a local institution followed by selling by it to settle the outstanding dues,” says a leading analyst.

“I don’t think all the positive fundamentals have turned bearish just in one go,” said another analyst. “The bulls have more than one reason to fight back even on Wednesday.”

Although the market had witnessed an active outflow of heavy cash to the bullion market, it was progressively getting back to the share business, of course, after having its due share in the booty, he said.

All the leading blue chips, notably leading bank and oil shares, widely known as market trend-setters, again finished around their lower circuit breakers and dragged the entire market along with them to new lows, they added.

The KSE 100-share index resumed trading on a bullish note as bulls were back in the market and covered positions in the current favourites at the attractively lower levels and pushed the index to session’s high of 11,191.99.

But then negative rumours followed in quick succession and bears tactically exploited the situation, pushing the index lower by another 389.90 points at 10,706.96, well above the session’s low of 10,665.01.

The index has crashed by seven per cent during the current two sessions, wiping out Rs218 billion from the market capital at Rs3,020 billion, but the bulls have the cash flow to correct the imbalance, brokers said.

Minus signs again dominated the list under the lead of Siemens Pakistan and Wyeth Pakistan, off Rs25 and Rs81, respectively, followed by MCB, Arif Habib Securities, Atlas Insurance, National Refinery, Attock Petroleum, Pakistan Petroleum, Gillette Pakistan, Shell Pakistan and Pakistan Oilfields, which suffered fall ranging from Rs11.75 to Rs21.

But on the other hand, Pakistan Hotels and Nestle Pakistan managed to finish with an extended gain of Rs8.10 and Rs27, respectively. Other good gainers included Pakistan Elektron, Pakistan Gum Chemicals, Dawood Hercules and Haroon Oils, which rose by Rs2.30 to Rs3.90.

Trading volume showed a modest rise at 220m shares from the previous 199m shares, but losers maintained a strong lead over gainers at 274 to 65, with 32 shares holding on to the last levels.

OGDC again topped the list of actives, off Rs7 at Rs145 on 33m shares, followed by National Bank, sharply lower by Rs12.90 at Rs245.60 on 19m shares, MCB, off Rs11.85 at Rs227.90 on 16m shares, Lucky Cement, up Rs1.60 at Rs112.05 on 15m shares, Pakistan Petroleum, off Rs12.85 at Rs244.60 on 10m shares, Pakistan Oilfields, lower Rs21 at Rs399.30 on 8m shares, and PTCL, off Rs2.70 at Rs51.85 also on 8m shares.

Other actives were led by DG Khan Cement, off Rs5.65 on 15m shares, followed by Bank of Punjab, lower Rs4.25 on 9m shares, and Fauji Fertiliser Bin Qasim, off 85 paisa on 7m shares.

FORWARD COUNTER: OGDC followed the lead of its counterpart in the ready section, off Rs7.65 at Rs145.65 on 22m shares, National Bank, lower Rs12.95 at Rs246.75 on 16m shares, and Lucky Cement, up one rupee at Rs112.15 on 13m shares.

Other actives were led by DG Khan Cement, sharply lower by Rs5.45 at Rs108.60 on 11m shares, and Pakistan Oilfields, off Rs21.05 at Rs400.30 also on 11m shares.

DEFAULTER COS: Crescent-Standard Bank came in for renewed selling and was marked down by 55 paisa at Rs4.50 on 0.443m shares, while Pangrio Sugar rose by one rupee at Rs3.70 on 0.104m shares. Others were modestly traded.

DIVIDEND: ABAMCO Capital Fund, ABAMCO Stock Market Fund, ABAMCO Growth Fund, interim at the rate of 35 per cent each on all the three.