August 14, 2007	Tuesday	Rajab 29, 1428

KARACHI, Aug 13: Stocks on Monday suffered widespread fall on active selling by leading investors on almost all the counters in the absence of strong support by the institutional traders and bargain-hunters.

The KSE 100-share index shed another 264 points at 12,748.62.00, eroding Rs74 billion from the market capital.

Higher cash dividend plus bonus shares by Pakistan Petroleum and JS & Company failed to generate fresh covering purchases as both suffered post-dividend selling and fell sharply lower.

Analysts said what seems to have accentuated the situation was reports of foreign selling on some of the counters, which attracted sympathetic unloading by locals but there was no matching buying at the falling prices.

The KSE 100-share index breached through the jealously guarded barrier of 13,000 points, and analysts predict the bear onslaught may continue in the coming sessions also in the absence of leading investors.

After having hit the session’s low at 12,699.65 at one stage, it finally managed to finish partially recovered at 12,748.62, off 264.34 points as compared to 13,012.96 at the last weekend. The KSE 30-share index also fell by 371.46 points at 15,236.55 points.

The market decline was again led by the banking and cement sectors, which in unison encountered heavy selling as a section of investors tried to cash in on the available margins of profits owing to developing situation on the political front, floor brokers said, adding the selling in part was also attributed to Independence Day holiday on Tuesday.

“The market rout was total as investors including financial institutions were not inclined to launch a rescue operation even at the falling prices,” said a leading analyst, adding “but rather some of the institutional traders were sellers on the high profile sectors”.

The falling daily turnover figure also reflects that all is not well on the market front as there are more sellers than buyers amid conflicting reports about the political situation, he said.

“What worries local investors is progressive exit of the leading foreign funds as they are not sure about the future outlook of the share business,” another analyst said.

Heavy selling in MCB, National Bank, Bank of Punjab and Lucky Cement signals that the worst is yet to come as leading stakeholders are getting out of their long positions amid reports of a political showdown.

But some analysts said the market could shed another 500 points in the prevailing uncertainty but ruled out further fall below the 12,000-level which could well prove a strong resistance point on the strength of the higher corporate announcements.

Minus signs dominated the list under the lead of Unilever Pakistan and JS & Co, off by Rs19.50 and Rs47.05 respectively. They were followed by Arif Habib Ltd, Javed Omer, Adamjee Insurance, EFU General and EFU Life, Pakistan Refinery, Mari Gas, Pak-Suzuki Motors, Ferozsons Lab, Sanofi-Aventis and Treet Corporation, off by Rs10 to Rs18.95.

Pakistan Resource Company and Siemens Pakistan on the other hand rose by Rs13.35 and Rs24 followed by Shaheen Insurance, Javedan Cement, Sazgar Engineering, Atlas Honda, Attock Petroleum, Sitara Chemical and Pakistan Engineering, which were quoted higher by Rs2 to Rs9.45.

Trading volume fell to 164m shares from the previous 213m shares as losers held a strong lead over the gainers at 262 to 56, with 22 shares holding on to the last levels.

TRG Pakistan led the list of actives, lower 25 paisa at Rs12.75 on 10m shares followed by WorldCall Telecom, up by 95 paisa at Rs20.25 on 9m shares and Arif Habib Securities, off Rs5.20 at Rs122.70 on 8m shares. Fauji Fertiliser Bin Qasim, easy by Rs1.30 at Rs42 on 7m shares, OGDC, off Re1 at Rs115.25 also on 7m shares, Lucky Cement, lower by Rs5.65 at Rs107.70 on 6m shares and Askari Bank, easy by Rs3.10 at Rs93.50 also on 6m shares.

NIB Bank led the list of other actives, off 75 paisa on 6m shares, followed by Sui Southern Gas, up by 85 paisa on 5m shares and Bank Alfalah, sharply lower by Rs2.35 also on 5m shares.

FORWARD COUNTER: Lucky Cement led the list of actives on this counter, off Rs5.68 at Rs108.02 on 6m shares, followed by National Bank, down by Rs7.40 at Rs237.85 also on 6m shares and MCB, lower by Rs9.05 at Rs291.45 on 5m shares.

Bank of Punjab followed them, lower by Rs4.85 at Rs92.35 on 4m shares and Fauji Fertiliser Bin Qasim, off 95 paisa at Rs42.25 also on 4m shares.

DEFAULTER COS: Nimir Chemicals led the list of actives on this counter but was held unchanged at Rs4.05 on 1.303m shares followed by Japan Power, lower by 45 paisa at Rs9 on 0.321m shares and Zeal Pak Cement, easy 15 paisa at Rs5.90 on 0.313m shares.

Quice Foods followed them, up by 65 paisa at Rs5.15 on 0.270m shares and Unity Modaraba, unchanged at Rs0.70 on 0.224m shares.

DIVIDEND: Pakistan Petroleum, cash 65 per cent plus bonus shares of 10 per cent, JS & Company, cash 25 per cent or ordinary shares and 7 per cent on preference shares, bonus shares 100 per cent and Allied Bank, interim 15 per cent.