December 20, 2006	Wednesday	Ziqa'ad 28, 1427

KARACHI, Dec 19: The KSE 100-share index on Tuesday briefly crashed below the resistance level of 10,000 points on nervous selling in overvalued bank and oil shares triggered by conflicting rumours about the on-going official forensic probe and investor worries linked to overleveraging in the forward contracts.

It took another massive plunge for the second session in a row from the overnight close, off 285.75 points or 2.76 per cent at 10,055 after at one stage breaching through the barrier of 10,000 points at 9,982.35. But late support in some of the leading base shares pushed it to close above the resistance level.

The KSE 30-share index suffered a decline of 3.44 per cent or 445.85 points at 12,526.86 as compared to 12,972.71 on panic selling in leading base shares.

It has crashed by 495 points or 4.75 per cent during the last two sessions, eroding Rs141 billion from the market capital at Rs2,799 billion.

Leading banks, including MCB and National Bank, Pakistan Petroleum and Pakistan Oilfields ended around their lower locks, evoking sympathetic selling on other blue chip counters.

It was not a single factor which continued to erode share values from the recent highs but a combination of them and indications are the current December may not be that bullish as had been the earlier four since 2002.

“Investor worries about the massive rise to Rs37 billion in leverage positions on CFS market triggered selling for the second session in a row as those involved in it sold to clear their positions,” some brokers said.

The market appears to be in a deep trouble as there are more sellers than buyers as negative news are following in quick succession, analysts said, adding “the reports of winning of court case by an investor against the Lahore Stock Exchange also worked against the underlying sentiment”.

But the investor chief worry is the reopening of forensic report and official statements of some of the cabinet committee about the probe and missing data on it seems to have taken steam out of the market at least for the near-term, they said.

Although there is no negative news on the rollover week and any chances of default on the part of any of the parties, investors are playing safe awaiting the smooth clearing of positions.

Among the prominent gainers, Frontier Sugar and Siemens Pakistan were leading, up by Rs3.65 and Rs32.75 followed by Sitara Chemicals, Huffaz Pipes, Attock Petroleum and Jahangir Siddiqui and Co, up by Rs1.50 to Rs3.05.

Sharp fall were strewn all over the list under the lead of Pak-Suzuki Motors and IGI Insurance, off Rs14 and Rs17 respectively. Other major losers included Arif Habib Securities, National Bank, MCB, Shell Pakistan, PSO, Pakistan Petroleum, Millat Tractors and Dawood Hercules, which suffered fall ranging from Rs8 to Rs12.75.

Trading volume crossed the 100m share mark at 124m shares from 92m shares but losers topped the gainers at 259 to 54, with 30 shares holding on to the last levels.

OGDC again led the lost of active off Rs1.50 at Rs116.50 on 14m shares followed by Pakistan Petroleum, lower by Rs8.80 at Rs230.50 on 11m shares, National Bank, off Rs12.30 at Rs234 on 9m shares, PTCL, lower by Rs2 at Rs44.30 on 9m shares and Pakistan Oilfields, off Rs11.50 at Rs344.50 on 5m shares.

PICIC followed them, lower 50 paisa on 8m shares, Bank of Punjab, lower Rs3.35 on 7m shares, WorldCall Telecom, up by 10 paisa on 4m shares and Faysal Bank, off Rs3.05 also on 4m shares.

FORWARD COUNTER: PTCL led the list of actives on this counter, off Rs1.63 at Rs44.60 on 10m shares followed by National Bank, lower by Rs12.34 at Rs234.51 also on 10m shares, OGDC, lower Rs1.40 at Rs117 on 7m shares and Pakistan Petroleum, off Rs8.50 at Rs231.30 on 6m shares.

PTCL’s January settlement was marked down by 40 paisa at Rs45 on 8m shares, while others were traded modestly amid fractional price changes.

DEFAULTER COS: Active shares on this counter also came in for stray selling and fell by 20 paisa under the lead of Crescent Standard Bank, lower by 20 paisa at Rs5 on 0.569m shares, Unity Modaraba, easy five paisa at Rs0.65 and Norrie Textiles, unchanged at Rs3.90 on 0.111m shares.

DIVIDEND: Mirpurkhas Sugar Mills, cash 22.5 per cent, New Jubilee Life Insurance, interim five per cent.

BOARD MEETINGS: Gammon Pakistan, Kohinoor Sugar on Dec 21, Chashma Sugar, Premier Sugar and Frontier Sugar Mills on Dec 22.