April 01, 2008	Tuesday	Rabi-ul-Awwal 23, 1429

KARACHI, March 31: Stocks on Monday fell across the board on hasty selling followed by talk of a fresh official probe into two major market crashes witnessed under the regime of former prime minister Shaukat Aziz, which wiped out billions of dollars from the market capital. The KSE 100-share index shed 143 points but firmly held above the barrier at 15,125.29.

But some analysts said it was technical selling in the backdrop of last week’s sustained run-up rather than any other negative development on the political front after swearing in of the new federal cabinet. The KSE 100-share finished the session with sharp decline of 142.93 points at 15,125.29 as compared to 15,268.22 points at the weekend session, reflecting the weakness of the leading base shares. Its junior partner, 30-share index fell by 266.06 points at 18,438.14.

The stock market had witnessed one of the major crashes in March 2005 and June 2006 on reported speculative manipulation by some big players, which wiped out about $15 billion and $13 billion in both the plunges from the savings of small investors. Subsequent probes, including by foreign experts failed to pinpoint the players behind the crashes in the absence of evidence, which, as foreign experts claim, was allegedly wiped out from the computer data.

Although the shares of those companies, which were said to be involved in the scandal, fell, some floor brokers attributed the sell-off to psychological rather than genuine factors as much water has already flown under the bridge since then.

“A loud whispering about the probe came at a time when the market was bracing to explore new higher levels beyond 15,000 level on the perception of smooth running on the political front with a two thirds majority,” a leading analyst Faisal A. Rajabali said.

But another analyst Hasnain Asghar Ali said the state of the economy being handed over to the new regime should worry them and the market and its putting back on the sound footing will need a lot of local and foreign effort.

“The market is playing on a terribly sound footing with an index level of well 15,000 points and it should not be weighed down by the negative feelers and should absorb them confidently,” analyst Ashraf Zakaria says.

Leading gainers were led by Pakistan Engineering and Sitara Chemicals, up by Rs17.75 and 15.70, followed by JS Investment, Mari Gas, Dadex Eternit, International Industries, Pakistan Cables, Colgate Pakistan and Dawood Hercules, which posted gains ranging from Rs5.00 11.30.

Prominent losers included EFU General Insurance and JS & Co, off by Rs38 and 37.65, respectively. Arif Habib Ltd, JS Global, Pakistan Resources Co, Mirpurkhas Sugar, Attock Petroleum, Tri-Pack Films, National Foods, Siemens Pakistan and HinoPak were among the other leading losers, which suffered fall ranging from Rs5 to 25.

Trading volume fell to 203m shares from the previous 227m shares as losers held a strong lead over the gainers at 197 to 112, with 44 shares holding on to the last levels.

Azgard Nine Textiles, led the list of actives, off Rs1.50 at Rs67.35 on 16m shares followed by Lucky Cement up one rupee at Rs139.75 on 16m shares, Bank Alfalah, steady by five paisa at Rs54.05 on 10m shares, D.G. Khan Cement, off 90 paisa at Rs113 also on 10m shares, Pervez Ahmed Securities, higher by Rs3.25 at Rs68.65 also on 10m shares, Arif Habib Securities sharply lower by Rs4.60 at Rs176.45 on 9m shares.

Other actives were led by Bank Islami Pakistan, easy by 10 paisa at Rs19.60 on 9m shares, Pak PTA, unchanged at Rs5.50 also on 9m shares, Dewan Cement, up 70 paisa at Rs16.50 on 8m shares and JS Bank, lower by 85 paisa at Rs21.60 also on 8m shares.

FORWARD COUNTER: D.G. Khan Cement came in for active selling at the higher level and led the list of actives, lower by 70 paisa at Rs113.95 on 5m shares followed by Lucky Cement, up by 85 paisa at Rs140.65 on 4m shares and JS Bank, lower by80 paisa at Rs21.90 also on 4m shares.

MCB followed them, off Rs5.85 at Rs418.25 on 4m shares and Bank of Punjab, easy by 39 paisa at Rs67 also on 4m shares.

DEFAULTER COS; Easy conditions were also witnessed on this counter as share prices generally fell where changed under the lead of Norrie Textiles, lower by 10 paisa at Rs1.85 on 0.681m shares.

Zeal Pak Cement followed it, easy by five paisa at Rs3.85 on 0.454m shares, Japan Power, unchanged at Rs6.85 on 0.168m shares and Unity Modaraba lower by five paisa at Rs1.05 on 0.189m shares. S.S. Oils and Invest Capital Bank were traded higher one rupee at Rs16.05 on 0.158m shares and Invest Capital Bank, off 15 paisa at Rs5.55 on 0.123m shares.

DIVIDEND: Century Insurance, bonus 30 per cent, right shares 50 per cent at a premium of Rs20 per share, EFU General Insurance, cash 60 per cent plus bonus shares of 15 per cent, Pakistan Income Fund, interim cash dividend on Central Depository units at Rs3.30 per unit, and the other units holders will get 6.55 bonus unites for every 100 held as on March 27, 2008 on the ex-bonus price of Rs50.35 per unit.