September 12, 2007	Wednesday	Sha'aban 29, 1428

KARACHI, Sept 11: The share market on Tuesday extended the overnight gains but late profit-selling on selected counters pushed it well below the session’s highs amid brisk two-way activity.

Analysts attributed the late selling apparently to some rethinking on Nawaz Sharif’s second exile and its likely impact on future stock trading. But some others said it was the indecisiveness of the hereto active institutional traders who lacked the buying enthusiasm associated with the episode of former prime minister after his deportation.

Investors’ reaction, though a bit late, was also evident from the retreat of the KSE 100-share index which after early having risen by well over 100 points ended with a modest rise of 16.39 points at 12,562.34. The free-float 30-share index on the other hand fell by 18.24 points at 15,333.56.

The 100-share index owed its modest rise to the strength of leading base shares, notably OGDC, Bank Alfalah, Pakistan Petroleum and Lucky Cement which recovered from the recent lows on active short-covering.

Analysts said conflicting reports about the impact of Nawaz Sharif’s deportation to Saudi Arabia did not allow investors to make fresh commitments at lower levels rather most of them indulged in profit-taking at the overnight higher levels.

“The market needs political tranquillity which is not there and after the current show of power by the ruling elite may further aggravate the tension,” said a leading analyst.

“Uncertainty is there amid talk of contempt of court, which may well lead to another legal battle,” some others fear, adding “in the similar conditions only those who have courage of conviction or the market’s ability to absorb successive shocks could take financial risks”.

News from the corporate sector were fairly encouraging in the form of higher cash dividend and bonus shares but they alone could not sustained the market run-up in tense political conditions and amid a great divide, they added.

Next couple of sessions will show how the market behaves in changing background news and the reaction of the foreign investors to the fresh developments, they added.

Leading gainers were led by National Foods which rose Rs50 in the post-dividend and bonus share trading and Fazal Textiles up by Rs14, followed by Javed Omer, EFU Life, Al-Ghazi Tractors, Attock Refinery, Pakistan Refinery, Pak-Suzuki Motors, Dawood Hercules, Ferozsons Lab, Clariant Pakistan, Packages and Noon Pakistan, which posted gains ranging from Rs5 to Rs10.05.

Losers were led by Siemens Pakistan and Attock Petroleum, off by Rs10 and Rs17.80. JS & Co, Gatron Industries, Pakistan Oilfields, Bata Pakistan, Millat Tractors and Lakson Tobacco followed them, off by Rs4 to Rs10.

Trading volume showed a modest rise at 214m shares as compared to 173m shares a day earlier, while gainers led losers by 148 to 139, with 37 shares holding on to the last levels.

The most active list was topped by TRG Pakistan, higher by 80 paisa at Rs14.45 on 36m shares followed by OGDC, higher by Rs2.20 at Rs111.70 on 25m shares, and Lucky Cement, steady 30 paisa at Rs126.70 on 16m shares.

Pakistan Petroleum, up by Rs4.35 at Rs246.85 on 10m shares, National Bank, off Rs3.85 at Rs233.65 on 5m shares and Bank Alfalah, up by 20 paisa at Rs47.95 on 8m shares.

Other actives were led by Bosicor Pakistan, up by 65 paisa on 14m shares, D.G. Khan Cement, off Rs1.60 on 12m shares, Pakistan Oilfields, lower by Rs6.75 on 8m shares and Attock Refinery, higher by Rs6 on 7m shares.

FORWARD COUNTER: Lucky Cement came in for active selling and fell by Rs1.10 at Rs125.40 on 12m shares followed by D.G. Khan Cement, Rs1.80 at Rs106.25 on 6m shares and Bank of Punjab, off Rs2.95 at Rs94.80 on 5m shares.

OGDC followed them, up by Rs1.75 at Rs108.75 on 5m shares and National Bank, lower Rs3.85 at Rs234.35 also on 5m shares.

DEFAULTER COMPANIES: Active trading was witnessed as some of the shares came in for strong buying under the lead of Nimir Chemicals, up by 40 paisa at Rs3.90 on 2.059m shares but on the other hand Japan Power came in for selling and was marked down by 15 paisa at Rs5.10 on 1.297m shares and Pangrio Sugar, higher by 45 paisa at Rs5.45 on 0.680m shares.

Norrie Textile was also actively traded, up by 15 paisa at Rs1.75 on 0.187m shares, followed by Quice Foods, higher 45 paisa at Rs4.85 on 0.171m shares and Unity Modaraba, unchanged at 65 paisa on 0.136m shares.

DIVIDEND: Attock Refinery, cash 40 per cent, bonus shares 25 per cent, Kohinoor Mills, cash 12.5 per cent, Karam Ceramics, cash 12.5 per cent, Rupali Polyester, cash 25 per cent, Bolan Casting, cash 20 per cent, bonus shares 10 per cent, Tata Textiles, cash 10 per cent, Dynea Pakistan and Crescent Standard Modaraba, both nil.