August 11, 2006	Friday	Rajab 15, 1427

KARACHI, Aug 10: The share market on Thursday finished with an extended fall as investors continued to unload long positions on oil and cement sectors despite the fact that their board meetings are due next week.

The KSE 100-share index shed an extra weight of 1.2 per cent or 130.45 points on fresh pruning in its heavy weights, notably OGDC, Pakistan Petroleum and Pakistan Oilfields, eroding Rs36 billion from the market capital.

Political uncertainty in the backdrop of opposition’s no-trust move against the prime minister on Aug 23, therefore, continued to take its toll as bears further tightened their grip on the price line.

The panic and confusion and the market’s highly erratic price movements reflect that leading investors are their on way-out despite rescue operations launched by some of the leading financial institutions.

Although leading bank shares managed to recover from the overnight lows under the lead of National Bank and MCB, the weakness of oil, leading among them closed around their lower locks and cement sectors weighed heavily against the sentiment.

The trading conditions further worsened after the KSE 100-share index at one stage fell to session’s low of 10,326.25 on panic selling but no willing buyer. Although it managed to finish partially recovered around 10,525.09 as compared to previous 10,655.54, after briefly touching the highest for the day at 10,372.94, its future outlook appears terribly bearish.

“The opposition may not have numerical member strength to put through the no-trust move but it has created uncertain trading conditions for the share business at least for the near-term,” analysts said.

Essentially, highly sensitive to negative political developments, the market mostly gives in, as it faces more selling than buying amid massive price erosions, they said.

But other leading analysts predict “an attractive bait of higher payouts is still there and could lift the market from the current lower levels after the needed technical correction is over.”

Board meetings of some of the leading banks and oil companies are due next week and indications are that they would come out with higher dividend announcements.

Minus signs again dominated the list under the lead of Pakistan Refinery and Nestle Pakistan, off Rs11 and Rs20 on renewed selling. Other notable losers included Arif Habib Securities, National Refinery, Attock Petroleum, PSO, Shell Pakistan, Mari Gas, Pakistan Oilfields, Pakistan Petroleum, Millat Tractors, Dawood Hercules, Treet Corporation and Pakistan Refinery, off Rs5 to Rs11.But on the other hand, Rafhan Bestfoods and IGI Insurance managed to finish with sharp gains of Rs9 and Rs11.60, respectively, followed by Artistic Denim, ICI Pakistan, Bata Pakistan, Goodluck Industries and Gatron Industries, up by Rs4.20 to Rs8.70.Trading volume fell to 200m shares from the previous 212m shares, as losers held a strong lead over gainers at 198 to 75, with 27 shares holding on to the last levels.

National Bank came in for active short-covering at the lower levels and was quoted higher by Rs2.75 at Rs235.20 on 20m shares, followed by MCB, higher by Rs1.20 at Rs228.75 on 16m shares, OGDC, sharply lower by Rs3.60 at Rs138.70 on 16m shares, PTCL, easy by 55 paisa at Rs44.65 on 13m shares, Pakistan Petroleum, off Rs4.45 at Rs248.50 on 11m shares, Union Bank, up Rs1.70 at Rs88.05 on 12m shares, and Faysal Bank, higher by Rs1.60 at Rs64.45 ahead of its board meeting on 8m shares.

Other actives were led by DG Khan Cement, off Rs2.75 on 13m shares, Bank of Punjab, higher by Rs2.15 on 11m shares, and Pakistan Oilfields, off Rs7.55 on 8m shares.

FORWARD COUNTER: National Bank also led the list of actives on this counter, higher by Rs1.80 at Rs235.80 on 7m shares, followed by Pakistan Petroleum, off Rs6.75 at Rs250 on 5m shares, and OGDC, lower by Rs3 at Rs140.30 also on 5m shares.

MCB followed them, up Rs1.25 at Rs230.15 on 5m shares, and Pakistan Oilfields, off Rs8.10 at Rs361.60 on 4m shares.

DEFAULTER COS: Trading on this counter was relatively slow in the absence of active speculative support. Prices changes were fractional either way amid light volume.

DIVIDEND: N.P. Spinning, interim cash at the rate of 33 per cent; Sigma Leasing, final six per cent, an interim of an identical amount has already been paid; AKD Index Tracker Fund, cash 4.50 per cent.

BOARD MEETINGS: National Refinery on Aug 17, Saudi Pak Commercial Bank on Aug 18, and Pakistan PTA on 24.