April 10, 2008	Thursday	Rabi-us-Sani 3, 1429

KARACHI, April 9: The share market turned lower owing to fresh selling on selected counters on Wednesday as a section of investors took a bearish view of some politically-motivated ugly incidents, notably manhandling of a former minister allegedly by lawyers in Lahore.

But a leading stock analyst said a loud official whispering about withdrawal of exemption on capital gains tax in the new national budget did take its toll after the mid-session but the general perception was that it may not be a bearish factor in the market’s current bullish stance in the broader corporate perspective, including higher payouts.

“The Karachi Stock Exchange (KSE) 100-share index should not have resumed trading with a spurt of about 125 points at 15,599, if it had been bowed down by Tuesday’s Lahore incident of violence,” an analyst said, adding: “it is its inherent strength that is keeping it well above the highest-ever level of 15,000 points.”

Although towards the final closing bell, it shed 69.90 points, at 15,404.17 as compared to 15,474.07, it confidently stayed well above the sustainable level of 15,400.

Active selling in leading shares, notably Arif Habib Securities, Nishat Mills, OGDC, Bank Al-Falah and D G Khan Cement and some others pulled it down from the early highs.

Leading base shares, notably Engro Chemical and blue chips on the oil counter, came in for active fresh buying and ended higher, but on the other hand cement sector came in for active selling despite reports of higher exports and increase in local selling prices which ended lower from the early highs.

“It may not be that easy to pull the market down from the current levels save a major negative political event,” said a leading floor broker.

“The new elite behind the market’s current bullish stance is too strong to be panicked by adverse comments.”

Pakistan Resource Company continued to scale fresh highs on the strength of higher bonus shares and rose by another 25.05 for the third session in a row in post-bonus trading, followed by Dawood Hercules, up Rs20.60, followed by Habib Bank, Central Insurance, EFU General, EFU Life, IGI Insurance, Dawood Lawrence, International Industries, BOC Pakistan, Unilever Pakistan and National Foods, which rose by Rs6.30 to 19.80.

Bata Pakistan and Siemens Pakistan were leading among the losers, off by Rs25 and 36, respectively. Other prominent losers were led by Arif Habib Ltd, Arif Habib Securities, Adamjee Insurance, PSO, Shell Gas, Pakistan Engineering, Service Industries, Pakistan Services, Lakson Tobacco and JS & Co, which suffered a fall, ranging from Rs7.20 to Rs22.10.

Trading volume was maintained on the higher side, totaling 316m shares, but losers held a strong lead over gainers at 204 to 112, with 26 holding on to the last levels.

Pakistan Oilfields topped the list of actives, up by Rs5.50 at Rs380 on reports of higher production on 27m shares, followed by D G Khan Cement, sharply lower by Rs4.20 at Rs114.40 on 26m shares, Arif Habib Securities, off by Rs9.80 at Rs186.50 on 25m shares, Lucky Cement, off Rs1.50 at Rs144 on 22m shares, OGDC, lower by 60 paisa at Rs137.50 on 13m shares, Bank Al-Falah, easy by 45 paisa at Rs55.45 on 10m shares, Pakistan Petroleum, steady by 85 paisa at Rs263.86 also on 10m shares and Engro Chemical, firm by 85 paisa at Rs358.75 on 9m shares.

Other actives were led by Fauji Fertiliser Bin Qasim, off Rs2.25 at Rs42.95 on 20m shares, and Nishat Mills, sharply lower by Rs5.50 at Rs124.50 on 12m shares.

FORWARD COUNTER: Lucky Cement came in for active selling at the inflated level and fell by Rs1.90 at Rs144.40 on 9m shares, D G Khan Cement, lower by Rs3.30 at Rs114.70 also on 9m shares and Arif Habib Securities, off Rs9.80 at Rs187 on 7m shares.

Pakistan Oilfields followed them, higher by Rs5 at Rs382 on 7m shares and Nishat Mills, lower by Rs5.15 at Rs125.60 on 6m shares.

DEFAULTER COs: Norrie Textiles came in for active short-covering and rose by one rupee at Rs2.60 on 3.227m shares followed by Zeal Pak Cement, easy by five paisa at Rs4.05 on 0.423m shares, National Asset Leasing, unchanged at Rs1.10 on 0.186m shares and Unity Modaraba, also unchanged at Rs1.10 on 0.186m shares.