March 01, 2007	Thursday	Safar 11, 1428

KARACHI, Feb 28: Stocks on Wednesday fell across the board on psychological selling triggered by reports of crash of China’s Shanghai bourse and its fallout on the regional markets. The KSE 100-share index plunged by 196.15 points or two per cent at 11,180.

Some local depressants including SECP directive to brokers to provide share business data linked to last March market crash also had their toll but analysts said the market had the potential to be back on the rails even tomorrow on the strength of positive fundamentals.

The market apparently reacted in unison with the regional bourses after the crash of the Chinese stock market amid fears that China may take some corrective steps to curb speculative buying. Shanghai composite index on Tuesday witnessed one of the largest single session falls during the last 10 years and its fallout spilled over to the global markets triggering panic-selling.

Although higher dividend of 30 per cent on earning per share (EPS) of Rs10.90 by ICI Pakistan and 32.5 per cent bonus shares by Bank of Punjab and 30 per cent bonus shares by Bank Alfalah on EPS of Rs13.40 were in line with analysts predictions, but came at time when the investors were worried with some other irritants including some procedural ones.

After plunging at one stage to session’s low of 11,158.12, the KSE 100-share index managed to finish above this level at 11,179.97, off about 196.15 points or 2pc. The KSE 30-share index on the other hand received a massive battering and was quoted lower by 325.73 points or 2.27 per cent at 14,049.56.

All the leading base shares including OGDC, National Bank, Bank of Punjab and Hub-Power were leading among the losers and so did other blue chips owing to across the board panic-selling.

“The crash of the Chinese market was not the only negative factor worrying investors,” a leading analyst Ahsan Mehanti said “the SECP directive to the brokerage houses to provide transaction data from January 2006 to July 2006, which brokers refused as they have no details, and implementation of Client Level Netting (CLN) risk management regime from next Monday also weighed heavily against the underlying sentiment”.

Ashraf Zakaria said changing political scenario in the region after the suicide attack on the US vice-president in Afghanistan and recession in the regional markets in sympathy with Chinese bourse could trigger fresh selling.

But optimists claim the market is expected to be back on the rails even tomorrow as there was nothing wrong with the basic corporate factors.

All was, however, not that bad with the broad market as some of the leading shares maintained their upward drive and rose further under the lead of Bata Pakistan and Nestle Pakistan, up by Rs7 and Rs65, followed by Javedan Cement, IGI Insurance, Sapphire Fibres and Sapphire Textiles and Gillette Pakistan, up by Rs3.50 to Rs6.

Treet Corporation and Wyeth Pakistan were leading among the losing shares, which fell by Rs10.90 and Rs19. Other prominent losers included Arif Habib Securities, JS & Co, Allied Bank, National Bank, EFU General, Adamjee Insurance, National Bank, United Sugar, Shell Pakistan, Indus Motors, Fauji Fertiliser, Engro Chemical and ICI Pakistan, off by Rs5.80 to Rs10.

Trading volume fell to 161m shares from the previous 193m shares as gainers again trailed far behind the losers at 105 to 212, with 39 shares holding on to the last levels.

Bank of Punjab led the list of actives on post bonus selling, off Rs3.05 at Rs121.70 on 20m shares, OGDC, lower by Rs3 at Rs119.25 also on 20m shares, Bank Alfalah, easy by Rs1.70 at Rs51.70 on 13m shares, National Bank, off Rs6.50 at Rs269 on 9m shares, Kot Addu Power, up by 75 paisa at Rs55.25 on 7m shares, D.G. Khan Cement, lower 70 paisa at Rs80.65 also on 7m shares and Hub-Power, lower Rs1.05 at Rs31.55 0n 5m shares.

Other actives included Fauji Fertiliser Bin Qasim, off Re1 on 11m shares followed by Javed Omer & Co, up by 70 paisa on 6m shares and Callmate Telips, higher by 30 paisa on 5m shares.

FORWARD COUNTER: National Bank also came in for active selling on the cleared list and fell by Rs6.95 at Rs269.60 on 8m shares followed by Bank of Punjab, lower by Rs2.15 at Rs123 also on 8m shares and MCB, off Rs5.65 at Rs292.80 on 7m shares.

They were followed by OGDC, lower Rs3.05 at Rs120.15 on 6m shares and Bank Alfalah, off Rs1.85 at Rs61.80 on 4m shares.

DEFAULTER COS: Crescent Standard Modaraba led the list of actives, up by 25 paisa at Rs1.50 on 1.035m shares followed by Nimir Chemical, lower 10 paisa at Rs2.75 on 0.461m shares and Norrie Textiles, easy 10 paisa at Rs3.70 on 0.276m shares.

Japan Power followed them, lower by 20 paisa at Rs4 on 0.265m shares, Crescent Standard Bank, lower 10 paisa at Rs3.95 on 0.259m shares and Zeal-Pak Cement, steady by five paisa at Rs5.20 on 0.160m shares.

DIVIDEND: Pace Pakistan, bonus shares at the rate of 17.5 per cent, Javed Omer & Co, bonus shares 10 per cent, JS Bank nil, Pakistan Cement, right shares, 45 per cent.