August 26, 2006	Saturday	Sha'aban 1, 1427

KARACHI, Aug 25: The KSE 100-share index on Friday plunged by another 370.44 points as a leading broker continued to unload his long positions both on the ready and forward counters, which could lead to a possible market crash.

The offloading may not be linked to the no-trust motion against the prime minister, it might be in sympathy with the rolling over of positions from the matured August settlements to the newcomer September contacts.

But certainly it was overextended beyond its technical mandate for undefined reasons, said a leading analyst commenting on the current market crash.

The crash was total as most of the leading shares in oil, bank and some other counters faced lower locks as prices had again fallen below the official ceiling.

During the last five sessions the index lost 978 points or about seven per cent wiping out Rs250 billion from the market capital. It was off 370.44 points finishing the weekend session at 9,584.79 points.

The prevailing turmoil in the market is reminiscent of previous crash of March 2005 and June 2006, which together took away 3,000 points or 32 per cent from the index but then it was ruling around 12,000 points.

“Why the leading broker is out to undone what his comrades are trying to achieve is not clear,” says a leading stock analyst, adding “but it appears to have some negative undercurrent beyond the market’s financial mechanism”.

The more intriguing was the silence on the part of other big ones who could play a dominating role as market rescuers. But they stayed away owing partly to the rollover week for the matured August settlements.

Political uncertainty ahead of vote count on the no-trust motion against the prime minister on next Tuesday was also considered a bearish factor, another stock analyst said.

Some of the dividend announcements are due from leading companies next week, notably from Pakistan Oilfields, but market could respond to its technical demands after the no-trust motion.

Pakistan Cables and Wyeth Pakistan led the list of gainers, up by Rs10.85 and Rs63.25, followed by Gillette Pakistan, Packages and some other, up by Rs6 and Rs10.30.

Prominent losers included Arif Habib Securities and Nestle Pakistan, off Rs25.70 and Rs50.95. They were followed by MCB, IGI Insurance, Pakistan Refinery, National Refinery, PSO, Pak-Suzuki Motors, Pakistan Petroleum, Atlas Honda and Pakistan Services, which were marked down by Rs10.60 to Rs19.95.

Trading volume rose to 167m shares from the previous 121m shares as losers extended their lead over the gainers at 213 to 54, with 20 shares holding on to their last levels.

National Bank came in for active selling and fell by Rs8.95 at Rs205.70 on 16m shares followed by OGDC, off Rs6 at Rs120 on 15m shares, PTCL, lower Rs2.10 at Rs40.20 also on 15m shares, Bank of Punjab, easy Rs1.45 at Rs83.25 on 10m shares.

D.G. Khan Cement, lower Rs4.65 at Rs88.80 on 9m shares, Pakistan Petroleum, off Rs11.55 at Rs220.25 also on 9m shares and Pakistan Oilfields, sharply lower by Rs17.10 on 7m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, lower Rs1.05 on 9m shares, Hub-Power, up by 45 paisa on 8m shares and PICIC, steady by 15 paisa on 7m shares.

FORWARD COUNTER: NBP also came in for active selling and was quoted further lower by Rs9.03 at Rs209 on 5m shares followed by OGDC, off Rs6.55 at Rs118.65 also on 5m shares and PTCL, lower Rs1.14 at Rs40.71 on 4m shares.

Other actives were led by Telecard, easy 81 paisa at Rs11.19 on 4m shares and Pakistan Petroleum, off Rs11.75 at Rs223.25 also on 4m shares.

DEFAULTER COS: There was a relative quiet on this counter owing to massive battering in the ready section but prices fell fractionally. Unity Modaraba was leading among the actives, unchanged at 60 paisa on 0.215m shares.

DIVIDEND: Pakistan Paper Products, cash 50 per cent, Pakistan Cables cash 25 per cent, bonus shares 50 per cent, ECOPack, bonus shares 40 per cent, Bank of Punjab, right share of 1.25 per cent.