May 26, 2006	Friday	Rabi-us-Sani 27, 1427

KARACHI, May 25: Share values on the stock market on Thursday again ran into profit-selling as leading investors were not inclined to hold long positions in view of the budget uncertainties and the absence of strong financial support. The index shed 98.03 points at 11,018.85.

Although some of the leading bank shares came in for active short-covering, weakness of oil giants on renewed selling weighed heavily against the underlying sentiment and took the entire market along with them in the minus column.

The KSE 100-share index suffered a fall of 98.03 points at 11,018.85 as compared to previous 11,116.88 ended well above the session’s low of 11,018.85.

Banks and blue chips on the future counter performed well mostly finishing further higher on active follow-support, index heavy weights, notably OGDC, Pakistan Petroleum and Pakistan Oilfields came in for active selling at the inflated levels and finished reacted.

In the recent past, the market trend is mostly guided by the trio and that may be a bad thing for the general investors who generally play outside the ambit of the overvalued shares. That is perhaps why active buying in the bank and cement shares failed to neutralise the negative impact of fresh selling in the oil sector.

Indications are that the speculation about the advent of foreign buying in the oil shares at the current lower levels may not be around as foreign funds will await the budget before re-entering the market, some analysts said.

Budget worries are there but the important thing is that investors are not enthused as all the floating rumours and whispering points to and investment-friendly budget, brokers said.

“The market will move one step forward and two steps back until investors find cue to some of the proposed tax relief through their own sources,” says a leading analyst, adding “but so far even well-connected among brokers failed to get right signal where to buy”.

Bargain-hunters and speculators were keeping to sidelines awaiting a lead from the big ones, which would follow either by a price flare-up or a plunge as the light daily turnover figures indicate.

Among the leading gainers, Colgate Pakistan and IGI Insurance were leading, up by Rs16.15 and Rs16.55, while losers were led by Pakistan Services and Unilever Pakistan, off Rs14 and Rs15.05 respectively on renewed selling.

Trading volume rose further to 234m shares from the previous 206m shares but losers again held a comfortable lead over the gainers at 174 to 148, with 41 shares holding on to the last levels.

National Bank was actively traded, up Re1 at Rs255.35 on 41m shares, followed by OGDC, off Rs3.50 at Rs151.00, MCB, higher Rs1.30 at Rs243 on 21m shares, D.G. Khan Cement, lower 65 paisa at Rs111.10 on 18m shares, Pakistan Petroleum, off Rs4.70 at Rs251.50 on 16m shares, Pakistan Oilfields, lower Rs4.95 at Rs406 on 6m shares.

Other actives included Lucky Cement, off Rs2.85 on 14m shares, Fauji Fertiliser Bin Qasim, up by 35 paisa on 6m shares, Bank of Punjab, easy 45 paisa also on 6m shares and Fauji Cement, lower 25 paisa on 5m shares.

FORWARD COUNTER: Both May and June settlements of OGDC remained under pressure on selling prompted by rollover perceptions. Both fell by Rs2.76 and Rs2.95 at Rs151.25 and Rs151.05 on 7m and 6m shares respectively.

But on the other hand May and June contracts of National Bank rose by Re1 and Rs1.20 at Rs255 and Rs258.50, while Pakistan Petroleum fell by Rs3.36 at Rs255.84 on modest turnover of 6m shares.