July 18, 2006	Tuesday	Jumadi-ul-Sani 21, 1427

KARACHI, July 17: After initial rise, stocks on Monday turned lower as a section of investors unloaded in part their long positions in a bit haste fearing fresh erosion in prices followed by reports that SECP probe in last year‘s market crash has begun.

The KSE 100-share index failed to sustain the coveted level of 10,000 points on mid-session selling triggered by reports that the US forensic investigators have joined the SECP probe team.

The underlying sentiment in part was also influenced bearishly after the central bank expressed concern over the stability of the economic fundamentals in its quarterly reports on country’s economic outlook.

Record increase in world oil prices in the backdrop of worsening Middle East situation after Israeli attack on Beirut and killings of citizens also worried investors who mostly played safe.

After initial increase, the KSE 100-share index finally finished with a sharp decline of 79.29 points at 9,947.80 as compared to 10,027.09 at the last weekend as leading base shares tended lower under the lead of OGDC, National Bank, and some others.

Analysts said the initial rise reflected that investors are not worried over the SECP probe reports and made active covering purchases at the still attractively lower levels but some late rethinking on the local political and law and order situation, they decided to take quick profits at the available margin.

“I don’t think bears could have a field day as an attractive bait of higher dividend and bonus shares would not allow bulls to stay on the sidelines and could keep the market in positive mood.”

The selling appears to be more technical rather than caused by some immediate depressants and the market could be back on the rails even tomorrow, he added.

Engro Chemical and Wyeth Pakistan was leading among the gainers, up Rs8.70 and 30, followed by Javed Omer, IGI Insurance, Mehmood Textiles, Pak-Suzuki Motors, Ferozsons Lab, Clariant Pakistan, and Mustehkam Cement, which posted gains ranging from Rs3.60 to 6.35.

Losers were led by Arif Habib Securities and Siemens Pakistan, off Rs8.80 and 55, respectively. Other prominent losers included National Bank, Adamjee Insurance, Artistic Denim, National Refinery, PSO, Shell Pakistan, Glaxo-SKF and EFU General, off Rs4 to 7.20.

Trading volume fell further to 153m shares from the previous 190m shares as losers forced a slight edge over the gainers at 137 to 130, with 39 shares holding on to the last levels.

The most active list was topped by D.G.Khan Cement, up 90 paisa at Rs95.30 on 18m shares, followed by Fauji Cement higher by Rs45 paisa at Rs24 on 15m shares, National Bank, off Rs5.75 at Rs22 on 12m shares, OGDC, lower Rs1.40 at Rs133.60 on 10m shares and Lucky Cement, up 50 paisa at Rs109 also on 10m shares.

Other actives were led by WorldCall Telcom, higher by 50 paisa on 11m shares, Nishat Mills, up Rs1.45 on 8m shares, Fauji Fertiliser Bin Qasim, steady by five paisa on 7m shares, Dewan Cement, lower 40 paisa also on 7m shares, and Maple Leaf Cement, up Rs1.55 on 7m shares.

FORWARD COUNTER: National Bank came in for active selling and fell sharply lower by Rs5.75 at Rs220.95 on 5m shares, D.G.Khan Cement, up 90 paisa at Rs95.35 on 4m shares, and Pakistan Petroleum, lower one rupee at Rs220.50 on 3m shares.

Lucky Cement followed them, unchanged at Rs108.50 on 2m shares and OGDC, lower Rs2 at Rs133.90 on 2m shares.

DEFAULTER COS: Trading on this counter remained light as buyers and sellers kept to the sidelines most of the time amid fractional price changes.

Trust Brokerage, Crescent Fibres, and Kashmir Edible was, however, an exceptions, which rose by one rupee at Rs8, 12.50 and 10, respectively, on 2,500, 16,500 and 2,000 shares, respectively.

DIVIDEND: Faysal Income & Growth Fund, bonus shares at the rate of Rs5.50 per unit, Faysal Balanced Growth Fund, bonus shares at the rate of Rs6 per unit and Dawood Money Market Fund, bonus Rs11.50 per share.