June 02, 2007	Saturday	Jamadi-ul-Awwal 16, 1428

KARACHI, June 1: The KSE 100-share index on Friday crossed the psychological barrier of 13,000 points, but failed to sustain gains above this level owing to weekend selling in the leading bank, oil and cement shares.

But most analysts believe that weekend selling generally halts the market’s upward drive for obvious reasons and indications are that the widely anticipated pre-budget rally by the next week may push it to new highs prior to an overdue technical correction.

After having hit its so far best level at 13,040.09 points, the KSE 100-share index finally closed the weekend session, off 27.60 points at 12,933.66 as compared to 12,961.26 a day earlier, reflecting the weakness of some of the leading base shares. The KSE 30-share index ended lower by 119.60 points at 16,397.09 points.

But the general perception is that the pre-budget rally is yet to manifest itself in a bigger way possibly by the next week and after that the field will be open to everyone and the outcome could be anybody’s guess, said an analyst.

Analysts said the breach was just a formality as a matter of fact it was close to cross it on Thursday, but it did not, in apparent effort by some of the big ones to keep the investors’ interest alive.

After the cross of the widely speculated level of 13,000 points well before the national budget the question is now being debated in the market circles “what next”.

“Is this an all-time highest level or best is still to come?” a big question for investors, observed analysts and added that “any massive retreat from this level would shake the investor confidence in the market’s current bullish outlook.”

Memories of March 2005 and June 2006 market crashes are still haunting investors’ minds and no one is inclined to be trapped again in the identical situation, brokers said.

A loud whispering about the imposition of martial law or emergency and postponement of elections in the backdrop of two opinions about the outcome of judicial crisis, could halt the market’s current bull-run, they fear.

Minus signs dominated the list owing to weekend selling under the lead of Nestle Pakistan and Unilever Pakistan, off Rs55 and 79.90 followed by Indus Motors, Millat Tractors, Clariant Pakistan, Packages, Gillette Pakistan, Al-Ghazi Tractors and Attock Petroleum, which fell by Rs4 to 10.

Gainers were led by Colgate Pakistan and Rafhan Maize rose by Rs21 and 80. Other good gainers included PSO, Engro Chemical, Arif Habib Ltd, Adamjee Insurance, MCB, JS & Co, JS Global, Sanofi-Aventis, and Rafhan Bestfoods, up by Rs7 to 20.

Trading volume showed a modest fall at 373m shares from the previous 410m shares as losers forced a strong lead over the gainers at 202 to 128m with 49 shares holding on to the last levels.

D.G. Khan topped the list of most actives, up Rs2 at Rs107.70 on 57m shares followed by Bank of Punjab, easy 75 paisa at Rs118.05 on 36m shares, Hub-Power, up Rs1.05 at Rs35.75 on 22m shares, Nishat Mills, off Rs4.55 at Rs124.15 on 17m shares, Askari Bank, lower 95 paisa at Rs98.05 on 16m shares, National Bank, off Rs2.25 at Rs251.05 also on 16m shares, and Bank Alfalah, unchanged at Rs54.90 on 14m shares.

TRG Pakistan followed them, lower by 30 paisa on 19m shares, followed by Fauji Fertiliser Bin Qasim, easy 50 paisa on 17m shares, and Lucky Cement, off Rs1.15 on 11m shares.

FORWARD COUNTER: MCB maintained its upward drive on the cleared list and was quoted further higher by Rs10.35 at Rs350.25 on 10m shares followed by D.G. Khan Cement, up Rs1.90 at Rs108.20 on 15m shares and Bank of Punjab, off 55 paisa at Rs118.95 on 10m shares.

Among the other actives, Engro Chemical was leading, sharply higher by Rs5.90 at Rs218.40 on 5m shares and Lucky Cement, lower Rs1.15 at Rs109.90 also on 5m shares.

DEFAULTER COS: Japan Power led the list of actives on this counter, lower 10 paisa at Rs4.30 on 0.343m shares followed by Nimir Chemicals, unchanged at Rs3.45 on 0.316m shares and Norrie Textiles, up 10 paisa at Rs2.55 on 0.141m shares.

Unity Modaraba, National Assets and Zeal Pak Cement were also actively traded mostly around the previous levels amid light turnover.