August 19, 2006	Saturday	Rajab 23, 1427

KARACHI, Aug 18: Stocks on Friday resisted fresh fall as a section of investors covered positions on selected counters at the lower levels but the rally was too feeble to generate strong speculative buying.

There was, however, no immediate reaction by the market to reports of lifting of ban on short-selling in future contracts possibly by the next month perhaps because it is considered a double-edged weapon, which works both sides of the fence.

But a leading stock analyst Ahsan Mehanti predicts it could significantly add to both daily volumes and capital appreciation possibly by the next week.

The KSE 100-share index ended with a fractional gain of 5.63 points at 10,562.88 as compared to 10,557.25 a day earlier as oil-share based buying kept it in a positive mood.

Turnover figure shrank to a modest level as most of the leading operators remained busy to salvage their cars virtually sank in Thursday’s deluge rather than making fresh commitments.

Dividend plus bonus shares by Colgate Palmolive Pakistan and Clover Pakistan at 160 per cent cash plus bonus shares at 25 per cent and 60 per cent and 20 per cent bonus shares was on the higher side of the investors perceptions but owing to shortage of their floating stock there was no big change in their share values.

Much of the activity remained confined to bank, cement and leading shares including PTCL on the other counters, although weekend selling allowed them to finish well below the session’s peak level.

There has been a strong whispering about the lifting of ban on short-selling in future contracts for the last couple of sessions as some of the big ones demanding it and the KSE board in its Thursday’s meeting obliged them. The decision was, however, subject to SECP approval.

There are two opinions about the restoration of the short-selling. Most pessimistic did not cherish the idea as memories of the market crash of March 2005 and June 2006 are still afresh in their minds, which wiped out $12 billion from their investment.But some big ones are of the view that the lifting of ban could add significantly to the daily turnover figures, which has shrank to modest proportions and to the investors’ capital gains.

Most of the price changes were fractional barring Millat Tractors, Adamjee Insurance, Jahangir Siddiqui Capital Market Fund and Wyeth Pakistan, which rose by Rs4.50 to 40, largest rise being in the latter.

Losers were led by Arif Habib Securities, Attock Refinery, Pakistan Cables, EFU Life Insurance, IGI Insurance, Pakistan Hotels and Pakistan Services, off Rs3 to 15.25.

Trading volume fell to 104m shares from the previous 190m shares but gainers held a modest lead over the losers at 117 to 107, with 35 shares holding on to the last levels.

Bank of Punjab led the list of actives, up one rupee at Rs90.80 on 16m shares followed by Pakistan Oilfields, higher by 30 paisa at Rs383.25 on 10m shares, D.G.Khan Cement, up one rupee at Rs99.20 also on 10m shares, National Bank, steady by 60 paisa at Rs233.50 paisa on 8m shares, PTCL, unchanged at Rs44.70 on 7m shares, MCB, up Rs1.65 at Rs229.85 on 5m shares, Pakistan Petroleum, off 80 paisa at Rs255.45 on 4m shares.

Other actives were led by Lucky Cement, up Rs1.90 on 5m shares, OGDC, easy 40 paisa on 4m shares and Adamjee Insurance, sharply higher by Rs4.50 ahead of its board meeting on 3m shares.

FORWARD COUNTER: Pakistan Oilfields led the list of actives on this counter, up 85 paisa at Rs383.35 on 4m shares, Bank of Punjab, higher by Rs1.10 at Rs91 on 3m shares and D.G.Khan Cement, higher by one rupee at Rs99.50 on 2m shares.

National Bank followed them, up 25 paisa at Rs233.45 on 2m shares and MCB, up one rupee at Rs230 also on 2m shares.

DEFAULTER COS: Norrie Textiles again came in for active support and rose by 40 paisa at Rs3.40 on 0.313m shares followed by Dandot Cement, which also posted a gain of one rupee at Rs12.10 on 0.159m shares. Others were traded modestly.

BOARD MEETINGS: Javedan Cement, on Aug 23, Atlas Insurance, American Life Assurance, on Aug 24, Mybank, on Aug 25, Union Bank on Aug 26, and Attock Refinery on Aug 28.