October 17, 2006	Tuesday	Ramazan 23, 1427

KARACHI, Oct 16: Trading volume on the Karachi Stock Exchange on Monday fell to low ebb as leading investors adhered to the sidelines and did not make fresh commitments even at the falling prices owing to coming Eid holidays.

Although the figure of 64m shares is one of lowest single-session totals, it is not the all-time lowest, which was 15m shares touched some two years back. It reflects the absence of foreign investors and local punters rather than any other negative news.The sluggishness appears to be a bit early as the market has to run a full trading week before Eid holidays, but investors mostly played safe as some technical factors, including clearing problems involved in making fresh commitments, forced them to stay away.The KSE 100-share index shed 15.24 points at 10,909.31 points, while KSE 30-share index fell by 45.70 points at 13,395.62, as some leading base shares suffered fresh fall under the lead of OGDC and MCB.

Foreign investors who have been very active on some of the counters in the recent past temporarily withdrew to the sidelines because of coming closures, which in turn has a negative impact on the daily proceedings.

But some leading analysts attributed the sluggishness to market talk that an investigation report on the March 2005 crash by foreign consultants is ready and will be presented to the National Assembly committee for action against the manipulators.

The probe report may pinpoint the major players behind the market crash of 2005 and June 2,006, but who will punish the erring ones who eroded $12 billion from the savings of small investors, analysts ask.

However, the market is expected to react negatively after the probe findings are out as those involved in the manipulation will try to push the market further down after indulging in speculative selling.

“This is the last trading week before the Eid holidays from next Monday and investors are not inclined to take long positions on any of the counters owing to financial risks involved in the intervening shutdowns,” says a leading stock analyst Faisal A. Rajabali. However, he did not rule the possibility of short-term operations on daily basis.

Some technical factors, notably 14-day CFS and rollover week are also behind a relative calm in trading and falling volume. Some of the brokers are, however, signalling to their clients to buy on certain counters at the lower levels to realise smart capital gains in the post-Eid holiday trading.

The corporate background news are positive as higher dividend and bonus shares have virtually flooded the market, as some of the smaller companies have outwitted the bigger ones in term dividend, which also included some pleasant surprises, brokers said. “The post-Eid

holiday market is expected to resume trading on a bullish note as pent-up demand combined with speculative bargain-hunting will net in the some new investors at the lower levels,” stock analyst Ahsan Mehanti predicts.

United Bank and Atlas Bank among the leading gainers, up by Rs8 and Rs9.55, respectively, followed by Ghani Glass, Sitara Chemical, Central Insurance, Clariant Pakistan, Pakistan Refinery, Union Bank and United Bank, higher by Rs3 to Rs8. Meezan Bank’s right share also rose by Rs11.25.

Losers were led by Arif Habib Securities and Wyeth Pakistan, off Rs11 and Rs26, respectively. They were followed by Metropolitan Bank, Gadoon Textiles, Honda Atlas, Millat Tractors, Pak-Suzuki Motors, Siemens Pakistan, Treet Corporation and Gillette Pakistan, off Rs3.30 to Rs6.65.

Turnover figure dropped to a new low at 64m shares reflecting the absence of leading buyers as losers forced a comfortable lead over gainers at 164 to 112, with 43 shares holding on to the last levels.

National Bank topped the list of actives, higher by Rs1.25 at Rs270.20 on 8m shares, followed by Bank Alfalah, off 50 paisa at Rs47.45 on 5m shares, OGDC, lower by Rs1.20 at Rs136 on 4m shares, Saudi Pak Bank, up one rupee at Rs19.70 on 3m shares, Faysal Bank, lower by Rs1.05 at Rs67.15 also on 3m shares, MCB, easy by Rs1.35 at Rs265.45 on 2m shares, and Bank of Punjab, off Rs1.30 at Rs92.95 also on 2m shares.

Other actives included Crescent Commercial Bank, easy five paisa on 2m shares, Azgard Nine, off 65 paisa also 2m shares, and Atlas Bank, higher by Rs9.55 on 2m shares.

FORWARD COUNTER: National Bank also led the list of actives on the cleared list amid dull trading and was quoted higher by Rs1.95 at Rs272 on 3m shares followed by Bank Alfalah, lower 40 paisa at Rs47.85 on 2m shares, OGDC, off 50 paisa at Rs137.45 on 1m shares.

PICIC followed them, easy by 15 paisa at Rs64.90 on 1m shares, and DG Khan Cement lower 55 paisa at Rs87.70 on also on 1m shares.

DEFAULTER COS: Crescent Standard Bank came in for active selling at the higher levels and was marked down by 65 paisa at Rs4.85 on 01.642m shares followed by Norrie Textiles, easy by one rupee at Rs5.65 on 0.759m shares, and Dawood Fibres, unchanged at Rs10 on 0.200m shares.

BOARD MEETINGS: Indus Motors, Dawood Hercules, Crescent Commercial Bank, Century Papers, on Oct 17, PICIC Investment Fund, PICIC Growth Fund, PICI Energy Fund, National Bank, Fauji Cement, Orix Leasing and Bank Alfalah, on Oct 18, Attock Refinery, Kot Addu Power, ICI Pakistan, Packages, Shell Pakistan, Lakson Tobacco, and Fauji Fertiliser Bin Qasim, on Oct 19, Sui Northern Gas, Tri-Pack Films, on Oct 28, OGDC, on Oct 29, Askari Commercial Bank, Pakistan Petroleum and BOC Pakistan, on Oct 30.