July 31, 2007	Tuesday	Rajab 15, 1428

KARACHI, July 30: Trading on the stock market on Monday resumed on a cautious note as investors could not precisely decide how to react to Musharraf-Benazir Dubai meeting amid conflicting reports about the deal or no deal and mostly played safe.

Leading investors remained conspicuous by their absence apparently awaiting more details about the meeting and its likely impact on the future stock trading.

The notable feature was that share of Habib Bank, whose public subscription will close on Tuesday, was shifted to the forward counter from the provisionally listed sector where it was marked down from its peak level by Rs13.40 at Rs310.60 on 3m shares on selling.

The KSE 100-share index, therefore, remained unsettled and failed to establish any definite price pattern amid alternate bouts of buying and selling as the report of deal between the two leaders was still not confirmed.

After either-way erratic movements hitting the session’s high and low at 13,667.92 and 13,554.19, the index finally finished with a fractional rise of 3.58 points at 13,634.08 as compared to 13,630.50 at the last weekend.

The market’s terribly cautious mood followed by conflicting reports about the outcome of the Dubai meeting was well reflected in the turnover figure which fell to year’s low at 163m shares as leading investors and financial traders kept to the sidelines and so did foreign buyers.

It attracted a lot of selling at the fag-end of the session but strong buying in the oil sector, notably Shell Pakistan, Attock Refinery, Attock Petroleum and Mari Gas kept it in a positive mood, brokers said.

The most optimistic among the investors are of the opinion that a broad accord has been reached on major national issues between the two leaders and it may be formally signed into a deal during the next couple of weeks,” analysts said.

But the pessimists think it may not be that easy for the both to meet each other’s demands, some of which relate to constitutional amendments and court proceedings and the most important among them being doffing of the uniform,” they added.

“But I think the widely speculated deal may not end the prevailing political uncertainty as other contenders of the power are oppose to it, which may lead to fresh agitation,” said a leading analyst.

He warns investors not to follow suggestions of a price flare-up in post-deal market sailing and play safe as the situation is fraught with high risks in the prevailing scenario and political polarisation.

“US threats of direct hits on the tribal areas, linking of the US aid to performance on the terror front and law order situation are some of the depressants which would set the future market direction,” he added.

Losers held a fair lead over the gainers but some of the leading shares managed to finish higher under the lead of JS & Co and National Refinery, up by Rs18.05 and Rs20.70. They were followed by Thal Jute, Attock Cement, EFU Life, Attock Refinery, Pakistan Refinery, PSO, Attock Petroleum, Shell Pakistan, Mari Gas, Engro Chemical and Bata Pakistan, which were marked up by Rs5 to Rs14.50.

Arif Habib Ltd and Siemens Pakistan were leading among the losers, off Rs14.55 and Rs36 respectively followed by Javed Omer, IGI Insurance, Fazal Textiles, New Jubilee Insurance, Gatron Industries, JS Global and Pakistan Cables, which suffered fall ranging from Rs5 to Rs12.30.

Trading volume fell to 163m shares from the previous 239m shares as losers held a strong lead over the gainers at 189 to 135, with 19 shares holding on to the last levels.

Telecard led the list of actives, up by Re1 at Rs14.30 on 10m shares, followed by National Bank, up by Rs1.20 at Rs.259.95 on 9m shares, Lucky Cement, higher by Rs1.30 at Rs129.50 also on 9m shares and Bosicor Pakistan, steady by 25 paisa at Rs19.15 on 8m shares.

Engro Chemical, higher by Rs7.55 at Rs252.55 on 7m shares, OGDC, firm by 15 paisa at Rs122.15 also on 7m shares and Bank Alfalah, up Re1 at Rs55.25 on 6m shares.

Other actives were led by Arif Habib Securities, off Rs4.80 on 7m shares, Fauji Fertiliser Bin Qasim, steady by five paisa on 6m shares and Javed Omer, Rs5.55 also on 6m shares.

FORWARD COUNTER: Lucky Cement led the list of actives on this counter, up by Rs1.20 at Rs130.70 on 4m shares followed by National Bank, higher by 81 paisa at Rs261.80 on 3m shares.

D.G. Khan Cement followed them, firm by 25 paisa at Rs109.40 on 3m shares and Engro Chemical, higher by Rs6.40 at Rs252.45 also on 3m shares.

DEFAULTER COS: Unlike the previous hectic sessions trading on this counter was relatively slow as leading investors held on to the sidelines awaiting further developments of the political front.

Japan Power came in for active selling and was marked down by five paisa at Rs9.20 on 0.276m shares, while Nimir Chemical rose by five paisa at Rs4.15 on 0.261m shares. Others were modestly traded on the lower side.

DIVIDEND: Arif Habib Ltd, final cash Rs10 or 100 per cent, bonus and right shares at the rate of 10 per cent, right shares at a premium of Rs90 per share, Fauji Fertiliser Company, second interim, Rs2.5 or 22.5 per cent, first interim already paid at 25 per cent, Asian Stock Fund, cash five per cent and Safeway Mutual Fund, cash 20 per cent.