October 30, 2007	Tuesday	Shawwal 17, 1428

KARACHI, Oct 29: Leading base shares on Monday came in for active selling at the higher levels by both institutional traders and a section of foreign investors under the lead of oil and some other blue chips and fell but the broader market performed well.The weakness of the index, however, did not affect the short-covering at the dips on the blue chip counters, notably those whose corporate results are due during the current week.

Some of the interim dividend, notably 25 per cent third interim by MCB was said to be below market expectations as was reflected by sharp fall in its share value.

The KSE 100-share index finished with a modest fall of 56.50 points at 14,393.48 as compared to 14,449.98 at the last weekend, reflecting the weakness of leading base shares.

OGDC and Pakistan Petroleum were among the leading index-based shares, which came for active selling at the last week’s higher levels but on the other hand cement shares came in for aggressive buying on reports that the Indian government has allowed seven Pakistani cement producers to export commodity to India by both the overland and sea routes.

“Cement shares are expected to receive a fresh boost even at the current highly inflated levels as the opening of a massive Indian market could absorb the entire local surplus productions,” said a leading analyst.

Already some of the undervalued cement shares, notably Zeal-Pak Cement and some others ruling well below their face values are steadily creeping to attain them. But the overvalued Lucky Cement and D.G.Khan Cement continued to lead this sector.

“The next couple of sessions may be very volatile ahead of the Supreme Court ruling on the eligibility of President Musharraf to seek re-lection for the second-term possibly on Thursday, which analysts said could work on both sides of the market.”But some others said the market is now capable of absorbing negative fallout of both adverse and position background news as it has now learnt to follow its inherent strength rather than psychological depressants.

However, they ruled the possibility of any big shakeout at this stage on the strength of corporate news and strong presence of the foreign buyers.

“The changing political scene ahead of the national elections in the backdrop of reconciliation moves among the contenders of power could give the needed courage to the prospective investors both local and foreign,” said a leading analyst Faisal Abbas.

The market is attracting an outflow of larger amount from the real estate owing to current sluggishness there, he said adding that indications are that the market is expected to sustain its current run-up in post-apex court ruling also, some other said.The general perception is that and is shared by some leading analysts also the market will stay in a positive mood, with technical corrections here and there.

Leading gainers were led by Colgate Pakistan and Attock Petroleum, up by Rs24 and 26.95, followed by Attock Refinery, Indus Motors, Siemens Pakistan, Sanofi-Aventis, Bata Pakistan, Nestle Pakistan, and Shezan International, which posted gains ranging from Rs9 to 32.75.

While losers included Pak-Suzuki Motors and Unilever Pakistan, off by Rs10.95 and 50, JS & Co, JS Global, Javed Omer, National Refinery, MCB, Pak-Suzuki, ICI Pakistan, Sitara Chemicals, and Packages followed them, off by Rs8 to 10.95.

Trading volume further shrank to 250m shares from the last weekend’s 282m shares but gainers held a modest lead over the losers at 199 to 169, with 35 shares holding on to the last levels.

OGDC topped the list of most actives, lower by 45 paisa at Rs128.25 on 18m shares followed by TRG Pakistan, up 55 paisa at Rs12.20 on 17m shares, Arif Habib Securities, higher by Rs3.90 at Rs180.25 on 15m shares, Pakistan Petroleum, off Rs2 at Rs283 on 13m shares, D.G.Khan Cement, steady by 75 paisa at Rs104.50 on 9m shares, and Attock Refinery, higher by Rs13.40 at Rs282.05 on 8m shares.

Other actives were led by WorldCall Telecom, up 50 paisa on 12m shares, NIB Bank, lower 15 paisa on 11m shares, Zeal-Pak Cement, steady 25 paisa on 8m shares and Fauji Fertiliser Bin Qasim, up 30 paisa also on 8m shares.

FORWARD COUNTER: D.G.Khan Cement led the list of actives, up 80 paisa at Rs105.30 on 5m shares, followed by Pakistan Petroleum, off Rs2 at Rs265 on 4m shares, OGDC, lower by 10 paisa at Rs129.40 on 4m shares and MCB, sharply lower by 8.20 at Rs363.80 on 3m shares.

DEFAULER COS: Nimir Chemical led the list of actives on this counter, lower 20 paisa at Rs5 on 2.170m shares followed by Japan Power, unchanged at Rs8.50 on 1.234m shares and Asset Bank, off 60 paisa at Rs6.50 on 0.604m shares.

Norrie Textiles and Quice Foods were traded higher by 10 paisa each at Rs2.30 and5.80, respectively, on 0.388m and 254m shares, respectively.

DIVIDEND: MCB, third interim cash 25 per cent, Engro Chemical, 2nd interim 20 per cent, PNSC, cash 15 per cent, Crescent Steel, interim 10 per cent, Ravi Textiles, nil.