August 23, 2006	Wednesday	Rajab 27, 1427

KARACHI, Aug 22: The KSE 100-share index on Tuesday plunged by 260.93 points or 2.49 per cent at 10,220.71 on panic-selling ahead of no-trust move against Prime Minister Shaukat Aziz and reports that the ban on short-selling in September future contracts would continue.

Dividend news including 20pc bonus shares by Pakistan Refinery in addition to 25pc interim bonus shares already paid, final cash payout of 80pc by Attock Petroleum and 25pc stock dividend by Glaxo-SKF were above market expectations but other negative factors overshadowed them.

The no-trust move to be tabled on Wednesday (today) in the national assembly may fail as the opposition may not have the numerical strength but it created uncertainty linked to psychological factors.

“Both the negative news came at a time when the market was bracing for a big technical rebound on the strength of higher payouts by the leading bank and cement shares,” floor brokers said.

The other disturbing factor was reports of a possible downgrading of Pakistan credit rating from the current “positive outlook” by the Standard & Poors’ owing to political and economic risks.

The negative news which followed in quick succession created panic-like situation both for the leading investors and brokers followed by hasty selling on the overvalued counters.

In the developing situation, investors decided to keep to the sidelines rather than jumping to any hasty conclusions, Faisal Abbas, an analyst said.

But Ahsan Mehanti predicts this is the time to buy at the current lower rates as the positive impact of higher payouts may not be in a fading stage and some of the higher dividend announcements from the bank and cement sectors are due shortly.

Leading gainers were led by Al-Ghazi Tractors, Javedan Cement, EFU Life, Colgate Pakistan and Unilever Pakistan, which posted gains ranging from Rs4.10 to Rs65 followed by Al-Ghazi Tractors, EFU Life and Javedan Cement, up by Rs4.10 to Rs8.

Losers were led by Shell Gas, National Refinery, Pakistan Refinery, Attock Petroleum and Arif Habib Securities, off Rs12.85 to Rs26 on active profit-selling at the inflated levels. Pakistan Oilfields, Pak-Suzuki Motors and several others, off Rs10 to Rs12.

Trading volume rose to 154m shares from the previous 121m shares but losers held a strong lead over the gainers at 218 to 62, with 30 shares holding on to the last levels.

Bank of Punjab topped the list of actives, lower 30 paisa at Rs89.50 on 16m shares followed by Pakistan Oilfields, off Rs10.30 at Rs370.50 on 13m shares, D.G.Khan Cement, lower by Rs3.05 at Rs97.15 on 12m shares, NBP, off Rs6.45 at Rs222.95 on 11m shares.

MCB Bank fell sharply by Rs6.60 at Rs222.40 on 5m shares and PTCL shed 40 paisa at Rs44.15 on 8m shares.

Others were led by OGDC, off Rs6.35 on 13m shares, Hub-Power, up by 65 paisa on 8m shares, Pakistan Petroleum, lower Rs9 at Rs242 also on 8m shares.

FORWARD COUNTER: PTCL led the list of actives on the cleared list, lower by 74 paisa at Rs44.01 on 5m shares and its September contract was off 30 paisa at Rs45 on 4m shares, both the settlements of Pakistan Oilfields fell sharply by Rs9.25 and Rs11.50 at Rs374.50 and Rs370.75 respectively.

DEFAULTER COS: Norrie Textiles again came in for active short-covering and rose by 50 paisa at Rs3.55 on 0.282m shares, while all others were modestly traded in the absence of strong support from any quarter.