June 22, 2006	Thursday	Jumadi-ul-Awwal 25, 1427

KARACHI, June 21: Share market on Wednesday suffered a mild correction as a section of investors took profits at the inflated levels but unlike the previous sessions there were buyers at the dips amid a modest two-way activity and a larger fall was averted.

The broader market was, however, a bit weak under the lead of oil shares in the absence of strong follow-up support rather than large selling from any quarter including bargain-hunters and speculators.

But the market’s upward bias is well-reflected in the behaviour of the KSE 100-share index, which finished with a fractional decline of 1.86 points but ended well above the benchmark level of 10,000 at 10,103.31. The session’s and high was touched at 9,937.97 and 10,202.48 respectively.

Fresh active buying in OGDC, National Bank, MCB and some other pivotals allowed the market to maintain a steady posture and limiting the index decline. Some other leading base shares, notably Pakistan Petroleum and Pakistan Oilfileds suffered pruning but bears failed to exploit the situation thanks to the presence of support.

Although liquidation of the ruling June settlements on the forward counters is still a couple of sessions away year-end investor perceptions could work on both sides of the fence.

Some analysts predict there could be a lot of selling in the form of portfolio adjustments by the financial sector for the fiscal ending June 30, while some others think quite the reverse.

Normally financial institutions and institutional traders remain in the market at the fag-end of the year and fill-in supply gaps here and there, which allows smooth year-end closing, brokers said.

“Privatisation of PSO, Pakistan Petroleum and some other state-owned units during the next couple of months could keep prospective investors in a positive mood and in turn the market,” a leading stock analyst Ahsan Mehanti predicts, adding “much would depend on the developing situation on the political front”.

A section of leading investors seems to be in a mood to close the current fiscal with an index level of beyond the benchmark of 10,000 points. That was not that tough a task as is reflected by the current market performance based on an attractive bait of capital gains in most of the leading shares.

Technically-inspired profit-selling was, however, there which eroded some of the extreme gains on the overvalued counters but the decline was modest as there were buyers at dips.

National Bank and MCB were leading among the gainers up Rs7.50 and Rs9.60, followed by Adamjee Insurance, East West Insurance, Pakistan Engineering, KSB Pumps, D.G. Khan and Lucky Cement and Dreamworld, which posted fresh gains ranging from Rs3 to Rs6.

Losers were led by Shell Pakistan and Wyeth Pakistan, off Rs15 and Rs80. Other prominent losers included Lakson Tobacco, PSO, Atlas Honda, Pak-Suzuki Motors, Sitara Chemical, Pakistan Oilfields and IGI Insurance, off Rs4 to Rs8.75.

Trading volume fell to 212m shares from the previous 227m shares as losers maintained a lead over the gainers at 197 to 86, with 31 shares holding on to the last levels.

OGDC was again actively traded, up by 40 paisa at Rs138.10 on 46m shares followed by National Bank, higher by Rs7.50 at Rs210.05 on 30m shares, D.G.Khan Cement, higher by Rs4.05 at Rs91.50 on 20m shares, Pakistan Petroleum, off Rs1.70 at Rs205.30 on 14m shares, Pakistan Oilfields, off Rs5.60 at Rs342.50 on 11m shares, PTCL, lower 40 paisa at Rs42.35 on 10m shares and MCB, higher by Rs9.60 at Rs201.85 on 9m shares.

Other actives were led by Lucky Cement, up by Rs5.05 on 9m shares, Fauji Cement, lower 15 paisa on 7m shares and Bank of Punjab, up by Rs1.95 on 6m shares.

FORWARD COUNTER: OGDC again came in for renewed support and rose to finish higher by 45 paisa at Rs138.60 on 17m shares followed by National Bank, higher by Rs7.15 at Rs211 on 13m shares, D.G. Khan Cement, up by Rs3.20 at Rs91.15 on 8m shares.

Other actives included Pakistan Petroleum, lower Rs1.05 at Rs206.50 on 6m shares and Pakistan Oilfields, off Rs6.85 at Rs344 on 5m shares. Oil shares stayed week and so were autos.

DEFAULTER COS: Trading on this counter remained slow as investors mostly kept to the sidelines apparently awaiting the return of bull market to the ready section. Price changes were mostly fractional on the lower side.

Crescent Standard Bank was leading among the actives but came in for stray selling and fell by 15 paisa at Rs4.55 on 0.215m shares, while others showed modest turnover.

DIVIDEND: Javedan Cement, second interim at the rate of 22pc for the year ending June 30, 2006.