June 14, 2006	Wednesday	Jumadi-ul-Awwal 17, 1427

KARACHI, June 13: The KSE 100-share index on Tuesday received another massive battering on renewed selling in most of the leading base shares under the lead of bank and oil sectors but there was no evidence of revival of financial support even at the attractively lower levels.

The post-budget bear slaughter was massive based on tax worries but what was more important was the absence of those who come to the rescue of a falling market operating under manipulative forces, brokers said “Everyone seems to have decided to ride the bandwagon leading to a big kill.”

The KSE 100-share index suffered its third single-session largest decline of 417.95 points or 4.29pc at 9,314.91, eroding Rs124bn from the market capital at Rs2,626bn. The highest single session fall of 491.02 points or 4.43pc was recorded on March 8, 2006 followed by 414.68 points dip on May 15, 2006. The total fall since last Friday was 535 points or a decline of Rs158bn in the market capital.

Leading base shares including National Bank, OGDC, Pakistan Petroleum, Pakistan Oilfields, MCB and some others, which hold more than 50pc weightage in the index finished sharply lower and the KSE authorities had to apply circuit breakers to forestall further decline. The index essentially owes its direction to the market behaviour of these half a dozen pivotals on both sides of the divide.

“There is a loud whispering in the market it is a straight fight between some big ones outside the domain of the share business to outwit each other,” says a leading analyst “but the chief casualty is the small investor.”

Volume figure showed a modest expansion but was nowhere around an average daily tally and speaks of developing financial situation on the stock market, which many fear, could lead to liquidity crunch in future stock trading.

All the negative factors, notably an increase in the capital value and withholding tax, SECP probe against market manipulation, tax on CFS income and fears of mutual funds liquidity from the CFS market in unison seem to have worked against the underlying sentiment, analysts said.

“All these depressants may not be that market killers as they have been made to look,” they said, adding “but the financial institutions failed to initiate rescue operations as their role of market stabiliser.”

The current sluggishness appears to be beyond the scope of the market forces, some brokers fear “the down drift may be a political undercurrent as money is outflowing from the market to some other speculative channels sans real estate.”

They said amid the prevailing turmoil, it appeared to be a bit difficult to exploit the positive basic market fundamentals as no one was inclined to invest at the current attractively lower levels amid fears of further decline.

Although minus signs again dominated the list, Nestle Pakistan and Treet Corporation managed to finish with gains of Rs11 and Rs11.60, followed by Fazal Textiles, Shaheen Insurance, EFU Life Insurance and Mustehkam Cement, up by Rs2.30 to Rs8.30.

Among the prominent losers Pakistan Oilfields and Arif Habib Securities were leading, off Rs16.90 and Rs26.85 respectively. Other leading losers were led by MCB, National Motors, National and Pakistan Refinery, Attock Petroleum, PSO, Shell Pakistan, Shell Gas, Pakistan Petroleum, Millat Tractors, Dawood Hercules and Gillette Pakistan, which suffered fall ranging from Rs9.25 to Rs15.50.

Trading volume rose to 88m shares from the previous 62m shares but losers held a strong lead over the gainers at 310 to 42, with 22 shares holding on to the last levels.

National Bank again led the list of actives, off Rs9.75 at Rs185.25 on 8m shares followed by PTCL, lower by Rs2.15 at Rs41.45 on 5m shares, OGDC, off Rs6.35 at Rs121.55 also on 5m shares, Pakistan Petroleum, sharply lower by Rs10.10 at Rs192.10 on 4m shares, Pakistan Oilfields, lower Rs16.90 at Rs321.70 also on 4m shares, MCB, easy by Rs9.25 at Rs175.75 on 4m shares and D.G. Khan Cement, off Rs4.20 at Rs79.95 on 3m shares.

Other actives were led by Pakistan PTA, easy 30 paisa on 4m shares, followed by Fauji Fertiliser Bin Qasim, lower 55 paisa also on 4m shares and Fauji Cement, off Re1 on 3m shares.

FORWARD COUNTER: OGDC came in for renewed selling and finished further lower by Rs6.30 at Rs120.35 on 13m shares followed by National Bank, lower Rs9.80 at Rs186.40 on 10m shares and Pakistan Petroleum, off Rs10.15 at Rs193.25 on 5m shares.

They were followed by Pakistan Oilfields, off Rs16.95 on 4m shares and Lucky Cement, lower Rs4.90 at Rs322.80 also on 4m shares. Others were also traded on the lower side amid light volumes.

DEFAULTER COS: Trading on this counter was slow but prices generally fell where changed under the lead of Crescent-Standard Bank, off 45 paisa at Rs4.15 on 0.135m shares. Others were modestly traded on the lower side in the absence of buying support.

DIVIDEND: Mari Gas, declared an interim dividend of 10 per cent for the financial year ending June 30, 2006.