November 16, 2006	Thursday	Shawwal 23, 1427

KARACHI, Nov 15: Stocks on Wednesday again turned lower as follow-up support turned shy in the absence of leading market players including financial institutions and punters. The KSE-100 share index shed a half of the overnight gain, off 57.46 points at 10,811.86.

The overnight run-up appears to be ‘inspired’ and aimed at bailing out some of the big ones after sending positive signals about the extension of the rally but small investors were again trapped.

Although the revised risk management rules will be effective from Dec 4, but bears made an excuse to take profits at the available margins after having indulged in active selling in leading bank and oil shares.

“The margin requirements under the revised risk management rules are feared to be doubled after the CFS financing limit is raised to Rs55 billion and that factor haunted both the investor and the broker alike,” analyst Ahsan Mehanti said.

The new margin rules have already taken their toll more than once and should not be considered a bearish factor anymore, some brokers said.After opening sharply higher the KSE 100-share index reacted to close off 57.46 points at 10,811.86 touching the session’s high and low at 10,964.98 and 10,799.75 respectively.

Bank shares again led the market decline under the lead of MCB, one of the largest weight holders in the index, and National Bank followed by OGDC and D.G. Khan Cement.

“The falling turnover figure reflects leading investors are just marking time and are not inclined to take long positions on the attractively lower levels apparently apprehensive of the developing situation on the law and order front,” said Ashraf Zakria, stock analyst. “New margin rules are also taking their toll in the form of profit-taking on the overvalued counters,” he added.

The general view about the future market outlook is that investors may not opt for fresh bigger commitments until the new margin rules are in place and brokers’ reservations about their impact on stock trading is removed, some others said.

Some of the inactive scrips, notably Shezan International and Wyeth Pakistan came in for stray support and rose by Rs10 and Rs117.50, followed by Jahangir Siddiqui Fund, Union Bank, Mirpurkhas Sugar, Atlas Honda, Berger Paints and Packages, which posted gains ranging from Rs3 to Rs7.

Colgate Pakistan and Nestle Pakistan fell by Rs12 to Rs19.05, while Thal Industries, National Bank, MCB, Mustehkam Cement, Lakson Tobacco, Pak-Suzuki Motors and Shell Gas fell by Rs4 to Rs9.80.

Trading volume showed a modest rise at 165m shares from the previous 141m shares as losers again forced a fair lead over the gainers at 169 to 123, with 57 shares holding on to the last levels.

PICIC again came in for active support and led the list of most active on buying triggered by reports of its merger with other sister companies, up by Rs2.85 at Rs71.85 on 25m shares followed by PTCL, firm by 15 paisa at Rs47.05 on 23m shares.OGDC, lower by Rs1.40 at Rs136.25 on 13m shares, National Bank, off Rs5.65 at Rs260.15 on 11m shares, Faysal Bank, steady by 20 paisa at Rs61.75 on 10m shares and Bank Alfalah, lower 30 paisa at Rs48.50 on 8m shares.

Other actively traded shares were led by MCB, off Rs6.25 at Rs256 on 6m shares, Bank Punjab, lower 70 paisa on 7m shares and PICIC Bank, off 90 paisa on 5m shares.

FORWARD COUNTER: National Bank led the list of actives on this counter, off Rs5.90 at Rs260.90 on 12m shares followed by MCB, lower by Rs6.35 at Rs257 and PICIC, up by Rs2.90 at Rs71.90 on 7m shares.

OGDC followed them, lower by 75 paisa at Rs136.30 on 6m shares and PTCL, up by 15 paisa at Rs47.15 on 5m shares.

DEFAULTER COS: Trading on this counter was relatively slow in the absence of leading buyers. However, there were some exceptions, Unity Modaraba, unchanged at 55 paisa 0.151m shares and Crescent Investment Bank, fell by 15 at Rs4.30 on 127m shares.