May 27, 2006	Saturday	Rabi-us-Sani 28, 1427

KARACHI, May 26: The KSE 100-share index on Friday crashed by 358.46 points from the mid-week highs on panic-selling as some of the investors squared their positions in the matured forward May contracts on the last session of the roll-over week.

The KSE 100-share index plunged by 358.46 points or 3.25 per cent at 10,660.39 on panic selling in all the leading base shares notably OGDC, National Bank, Pakistan Petroleum and PTCL, which ended around their lower locks. Market capital also suffered a decline of Rs96 billion at Rs3,007.

The sell-off was triggered by reports against PTCL sell-off just on the heels of apex court stay against the handing over of Pakistan Steel to a consortium of a highest bidder. PTCL fell by 3.50 at Rs48 and took the entire market along with it in the minus column.

The selling covered all the sectors, overvalued shares being in the forefront of major losers facing limit loss in most of the case as there were sellers but no buyers at the falling prices.

The KSE 100-share index finished with a fresh fall of 358.46 points at 10,660.39 as compared to 11,018.85, as leading shares again fell on weekend selling fuelled by a combination of bad news.

Strike call by the political parties on Saturday (May 27) also took its toll in the form of slow trading and light ready off-take even by the leading institutional traders.

The relative lull in trading was also attributed to a case in the law court against the sell-off of the controlling shares of the PTCL to Etisalat just on the heels of apex court stay on the handing over of Pakistan Steel up to June 15, sold to a consortium at Rs22 billion a couple of weeks earlier, brokers said.

“The entire privatisation programme may receive a big jolt if the court’s verdict goes against the process,” they fear adding the “sell-off of other state-owned units may be delayed having negative fall-out on stock trading.”

But some others said budget worries dominated the trading as investors are playing safe and are not inclined to take even the calculated risk at this stage.

However, the general perception is that the pre-budget week could be eventful as investors and bargain-hunters would quickly follow the “leaks” both positive and negative, pulling the market from the prevailing uncertainty.

Leading oil shares, including Pakistan Petroleum, PSO, and some others, which are in the process of privatisation’ came in for renewed selling as investors holding long positions liquidate in part their holding.

Prominent losers were led by Shell Pakistan, PSO, National Refinery, EFU Life, Pakistan Petroleum, Treet Corporation, National Bank, MCB, and Pakistan Oilfields, which suffered fall ranging from Rs7 and 17.50.

Some of the leading shares managed to finish with modest to good gains ranging from Haroon Oil, Goodluck Industries, Shell Gas, IGI Insurance, which rose by Rs6 to 17.40. The largest rise of Rs53 was noted in Nestle Pakistan.

Trading volume fell to 177m shares from the previous 234m shares as gainers trailed far behind the losers at 73 to 215, with 22 shares holding on to the last levels.

OGDC topped the list of actives, off Rs7.30 at Rs143.70 on 28m shares followed by National Bank, lower Rs12.75 at Rs242 on 21m shares, Pakistan Petroleum, easy Rs7 at Rs244.50 on 17m shares, MCB, off Rs12.15 at Rs230.85 0n 15m shares, PTCL, lower Rs3.50 at Rs48 on 11m shares, D.G. Khan Cement, lower Rs6.55 at Rs105.55 on 9m shares and Pakistan Oilfields, down Rs7.50 at Rs388.50 on 5m shares.

Other actives were led by Lucky Cement, off Rs5.50 on 9m shares followed by Bank of Punjab, lower 3.25 on 6m shares and Abamco Capital Fund, easy 40 paisa on 5m shares.

FORWARD COUNTER: OGDC also led the list of losers on the cleared list, off Rs6.90 at Rs144.15 on 12m shares, National Bank, off Rs12.92 at Rs245.58 on 10m shares Pakistan Petroleum, lower Rs7.34 at Rs248.50 also on 10m shares and MCB, off Rs11.90 on 7m shares. Some other actives also fell.

DEFAULTER COS: Pangrio Sugar came in for active support and rose one rupee at Rs9.40 on 1.088m shares followed by Crescent Standard Bank, lower 25 paisa at Rs4.20 on 0.141m shares.

DIVIDEND: PICIC, interim at the rate of five per cent.