September 14, 2006	Thursday	Sha'aban 20, 1427

KARACHI, Sept 13: Stocks on Wednesday failed to sustain the overnight CFS-aided run-up on panic-selling followed by reports that brokers had been directed to deposit stamp duty under the amended act on electronic transfer of shares at the rate of 0.10pc at par value.

But some analysts attributed the sell-off to liquidity crunch.

The KSE 100-share index breached through the barrier of 10,000 at 9,988.63, off 168.54 points eroding Rs45.517 billion from the market capital, while 30-share index fell by 236.55 points at 12,485.14 points.

Reports that the Sindh Board of Revenue has sent a letter to the relevant authorities to deposit duty under the amended stamp duty act, which created confusion among the investors as shares are already “frequently transferred from one end to the other and how the CFS fund providers will pay the duty,” Hasnain Asghar Ali, a leading stock analyst said.

But the confusion prevailed till the closing bell as brokers were not clear how to react to the amended stamp duty act, he added.

The opening was, however, a bit higher, what the dealers called an extension of the overnight rebound but as the reports of stamp duty reached the market, investors hastened to sell in part their overnight positions.

All the high-profile and base shares fell across-the-board as a section of leading punters and bargain-hunters continued to take profit at the overnight margins forcing MCB, Pakistan Petroleum, OGDC and some other to finish around their lower locks.

“I don’t think bears could outwit bulls in the changed investment scenario in the backdrop of increase in CFS funding by early next month,” said Faisal Abbas, an equity analyst.

Negative fallout of the political tensions was there but the market was expected to follow its own fundamentals based on dividend and payouts by the cement and some other leading companies, brokers said.

Leading gainers were led by IGI Insurance and Nestle Pakistan, up by Rs16 and Rs38.90, followed by Jahangir Siddiqui Fund, New Jubilee Insurance, Fazal Textiles, Indus Motors and Pak-Suzuki Motors, up by Rs4 to Rs8.

Oil shares led the market decline, prominent losers being Arif Habib Securities and Unilever Pakistan, off Rs9.60 and Rs25 respectively. Others to follow them were National Bank, MCB, Gatron Industries, National Refinery, PSO, Shell Pakistan, Pakistan Oilfields, Pakistan Petroleum, Colgate Pakistan and Attock Petroleum, off Rs5 to Rs9.05.

Trading volume fell to 164m shares from the previous 173m shares as gainers trailed behind the losers at 175 to 110, with 34 shares holding on to the last levels.

Fauji Cement came in for active support and rose by 10 paisa at Rs21.40 on 19m shares followed by D.G. Khan Cement, lower 75 paisa at Rs95.50 on 17m shares, National Bank, off Rs6.20 at Rs228.70 on 13m shares and MCB, lower by Rs6.25 at Rs226.25 on 8m shares.

PICIC, up by 40 paisa at Rs68.25 also on 8m shares, OGDC, easy by Rs3.30 at Rs125.70 on 6m shares and Pakistan Petroleum, off Rs7.65 at Rs232.40 also on 6m shares.

Other actives were led by Nishat Mills, easy 75 paisa on 7m shares, Bank Alfalah, easy by 10 paisa on 5m shares and Maple Leaf Cement, unchanged also on 5m shares.

FORWARD COUNTER: D.G. Khan led the list of actives on this counter, off 75 paisa at Rs97 on 3m shares followed by OGDC, off Rs3.20 at Rs122.80 also on 3m shares, National Bank, sharply lower by Rs6.60 at Rs229.60 on 3m shares.

MCB followed them, off Rs6.40 at Rs227.30 on 3m shares and PICIC, up by 40 paisa at Rs68.65 on 2m shares. Other leading shares also fell where changed.

DEFAULTER COS: Caravan Fabrics came in for active selling and was marked down by five paisa at 70 paisa on 0.452m shares followed by Crescent Standard Modaraba, lower 20 paisa at Rs1.10 on 0.253m shares and Unity Modaraba, up by 10 paisa at Rs90 paisa on 0.210m shares.