August 10, 2006	Thursday	Rajab 14, 1427

KARACHI, Aug 9: Stocks on Wednesday fell across-the-board on panic-selling triggered by reports that the opposition will table a no-confidence motion against Prime Minister Shaukat Aziz on Aug 23. The KSE 100-share index finished sharply lower by 173 points or 1.60 per cent at 10,655.54 points.

“The last 15 minutes before the official close proved fatal for a terribly bullish market aided by higher payouts after the news of no-trust move against the prime minister reached the market,” said Asharaf Zakria, a leading stock analyst.

There was panic all around as bears intensified selling on the overvalued counters luring others to follow suit and the consequent panic. Although the news of no-trust move was in the press for the last couple of weeks but what seemed to have triggered panic-selling both from the general investors and the weakholders was the fixation of the date, he said.

“The opposition may not have the numerical strength and the move may fail but bears make it a point to cash in on the available margins of profits in an overbought market,” Hasnain Asghar Ali said.

He said the late short-covering by leading financial institutions allowed the market to finish partially recovered from the low as 20 per cent of the losses were recouped in most of the pivotals.

After hitting the session’s high of 10,892.00, up 64 points from the previous close, the KSE 100-share fell to a low of 10,589, off 239 points but late buying pushed it up to close around 10,655.54, off 172.85 points or 1.60 per cent. The market capital showed a fresh fall of Rs45.477bn at Rs2,976.047bn.

Most analysts are, however, of the view that the current sell-off was not genuine and investors will be back in the arena as no one is inclined to miss the train for capital gains as well as higher dividend due from some of the leading companies including Askari Bank, Faysal, Bank Alfalah, OGDC and Pakistan Petroleum.

Leading gainers were led by IGI Insurance and Wyeth Pakistan, up by Rs19.15 and Rs75, followed by Bata Pakistan, Dawood Hercules, Mari Gas, Rafhan Bestfoods, EFU Life and Treet Corporation, which posted gains ranging from Rs5 to Rs10.85.

Shell Pakistan remained under pressure on post-dividend selling and fell by Rs16.90 followed by Pakistan Services, off Rs18.55. Others which fell sharply included National Bank, Artistic Denim, Pakistan Petroleum, PSO, MCB, Pakistan Oilfields and Pak-Suzuki Motors, off Rs5 to Rs13.50.

Trading volume shrank to 212m shares from the previous 215m shares as losers maintained a strong lead over the gainers at 185 to 111, with 39 shares holding on to the last levels.

D.G. Khan Cement led the list of actives, off Rs1.85 at Rs97.65 on 17m shares followed by National Bank, lower Rs5.40 at Rs232.45 on 16m shares, PTCL, easy by Rs1.35 at Rs45 on 15m shares, MCB Bank, sharply lower by Rs11.95 on 14m shares, OGDC, lower Rs3.15 at Rs142.30 on 12m shares, Pakistan Petroleum, off Rs6.40 at Rs254.95 also on 12m shares and Faysal Bank, up by Rs2.60 at Rs62.85 on 7m shares.Other actives were led by Bank of Punjab, off Rs2.95 on 8m shares, PICIC, unchanged on 7m shares and Pakistan Oilfields, off Rs9.90 also on 7m.

FORWARD COUNTER: National Bank came in for active selling followed by reports that its management would sell its about six per cent stake in Bank Al-Jazira totalling over 6m shares at a discount in the absence of a sole buyer and was quoted lower by Rs6 at Rs234 on 5m shares followed by MCB, sharply lower by Rs12 at Rs228.90 on 4m shares and Pakistan Petroleum, off Rs7.20 at Rs25.75 on 4m shares.

Union Bank followed them, up 55 paisa at Rs86 on 4m shares and D.G. Khan Cement, off Rs1.85 at Rs45 on 3m shares.

DEFAULTER COS: Barring Pangrio Sugar, which came in for active profit-selling at the higher level, fell by 35 paisa at Rs9.75 on 0.231m shares, all others were fractionally traded amid slow deals.

BOARD MEETINGS: Pakistan Services on Aug 12, Prime Commercial Bank, Allied Bank on Aug 16, Colgate Palmolive on Aug 17 and ICI Pakistan and Packages on Aug 24.