July 29, 2006	Saturday	Rajab 2, 1427

KARACHI, July 28: Stock market on Friday failed to extend its recent run-up as a section of investors indulged in profit-selling at the higher levels but investors seem to have ignored the negative political developments and followed the lead of its basic positive fundamentals.

The opening was, however, fairly impressive as most of the leading shares attracted fresh covering purchases and rose but the afternoon session witnessed profit-selling by the weakholders and sundry speculators owing to weekend considerations.

The joint opposition’s no-trust move against the prime minister and MQM’s move to part ways with the government, which could lead to an imminent political crisis, was apparently ignored by both the leading investors and the financial institutions as was reflected by a manageable decline in the KSE index caused apparently by the weekend selling.

“The developing political situation may take its toll in the coming weeks if the anti-government forces remained united,” leading analysts ruled out the possibility of any big change in the current stance “the market is currently guided by the payout euphoria”.

The fact that the KSE 100-share index ended with a modest fall of 77.21 points at 10,353.52 points reflects that investors were holding on to their apparently secured positions on the high-profile shares whose board meetings were due during the next week. It touched the highest at 10,482.60 points and the lowest a 10,342.83.

The fall was attributed to late-selling in some of the index-heavy weights, notably in the oil and banking sectors, although only extreme gains were pared of.

The OGDC share is likely to rise to its pre-reaction level of Rs160 plus on speculative support followed by reports that the government is expected to raise $1bn through its GDR float, some analysts predict.

But some others said it was already ruling around its GDR rate being calculated at $2.33, which comes to Rs140 per share. However, brisk activity in its share during the last couple of sessions and price flare-up reflected that it could rise further higher.

Shell Pakistan and PSO led the list of prominent gainers on active support ahead of their board meetings and market talk of higher dividend, up by Rs18.35 and Rs16.50, followed by EFU Life, Javed Omer, Mustehkam Cement, Millat Tractors, International Industries and Pak-Suzuki Motors on follow-up support in response to higher bonus shares and final dividend, posted gains ranging from Rs4 to Rs16.25.

Nestle Pakistan and Unilever Pakistan fell by Rs44.95 and Rs50. Other notable gainers were led by Arif Habib Securities, Atlas Honda, Engro Chemical, Abbott Lab, AKD Securities, Ferozsons Lab and Dawood Hercules, off Rs4 to Rs15.

Trading volume fell to 244m shares from the previous 250m shares, as losers forced a comfortable lead over the gainers at 154 to 96, with 33 shares holding on to the last levels.

Pakistan Petroleum topped the list of active, up by Rs2.50 at Rs249.50 on 41m shares followed by OGDC, off Rs1.50 at Rs140.90 on 38m shares, Pakistan Oilfields, higher by Rs1.25 at Rs362.60 on 15m shares, National Bank, lower by Rs1.10 at Rs224 also on 15m shares, PSO, higher by Rs16.50 on sell-off news at Rs347.30 on 8m shares and PTCL, easy 30 paisa at Rs41.70 on 6m shares.

Other actives were led by Pakistan Cement, unchanged on 11m shares, Fauji Cement, lower 65 paisa on 10m shares, D.G.Khan Cement, easy Rs2.20 also on 10m shares and UTP Growth Fund, unchanged on 7m shares.

FORWARD COUNTER: Pakistan Petroleum was also actively traded on this counter, up by Rs2 at Rs251.50 on 9m shares followed by OGDC, easy by Rs1.55 at Rs142 on 7m shares and Pakistan Oilfields, lower 40 paisa at Rs365 on 6m shares.

National Bank followed them, easy by 40 paisa at Rs226.60 on 3m shares and OGDC July settlement, off Re1 at Rs141 also on 3m shares.

DEFAULTER COS: Crescent Standard Bank came in for active support and rose by Re1 at Rs5.50 on 1.063m shares but on the other hand Pangrio Sugar, fell by 20 paisa at Rs9.30 on 0.104m shares. Others were modestly traded mostly on the lower side.

DIVIDEND: Faysal Bank, interim cash at the rate of 25pc for the half year ended June 30, 2006 (book closure from Aug 23 to 30).

BOARD MEETINGS: Altern Energy on July 31, Ghandhara Industries on Aug 2 and Pakistan State Oil on Aug 3.