June 06, 2008	Friday	Jamadi-us-Sani 01, 1429

KARACHI, June 5: The stock market failed to sustain the initial run-up after a buoyant opening on Thursday as a section of investors indulged in profit-taking followed by rumours of withdrawal of tax exemption on mutual funds and some other budget-related negative news.

But some analysts said the bulk of selling originated from foreign investors who early pushed prices of leading shares in oil, banking and cement sectors higher and then sold in a bit haste, pushing a perfectly sound market again into the minus column.The market again witnessed a galore of upper locks on selected counters as leading shares, having a potential of fresh capital gains, were again chased higher and most of them held on to their early gains.

The Karachi Stock Exchange (KSE) 100-share index, therefore, early rose by 183 points to hit the session’s high of 13,272.49 but failed to sustain it on late selling and finally ended with a modest fall of 35.51 points at 13,053.99. Its junior partner also reacted by 55.92 points at 15,305.97.

“Pre-budget rumours, both positive and negative, would work against the underlying sentiment but the positive factors, including the tax exemption on Capital Gains Tax could take the market to new highs as it did on Wednesday, pushing the index by a massive five per cent higher,” said a leading analyst Hasnain Asghar Ali.

The question being debated in the market circles is that what would the next target of the index in post-budget sessions as foreign investors would be back in the market as they may not like to miss an attractive bait of new tax relief for the bourse, said another analyst Ashraf Zakria, adding: “whether or not it will surpass its previous all-time peak level of 15,976.”

There appears to be a broad consensus among floor brokers and analysts based on positive whispering of the meetings between the high-ups of the bourses and the country’s finance managers that the new budget is expected to be investment- friendly containing a judicious blend of both taxes and relief.

That is perhaps why the next two pre-budget sessions could be more volatile than the current one, but speculative buying and selling is expected to set its future direction, analyst Ahsan Mehanti said.

AKD Capital and Wyeth Pakistan were among the top gainers, up by Rs54.07 and Rs98, followed by Sapphire Fibres, JS Global, EFU General and Life, Lakson Tobacco, Dawood Hercules, National Foods and several others, which were quoted higher by Rs10.99 to EFU Life.

Prominent losers were led by Pakistan Oilfields and Pakistan Services, off Rs17.61 and Rs28, respectively. They were followed by Dawood Lawrence, PSO, Dadex, Pakistan Engineering, Millat Tractors, Service Industries, Sanofi-Aventis, off by Rs5.20 to Rs10.50.

Trading volume showed a modest rise at 221m shares from the previous 205m shares as losers held a modest lead over gainers at 195 to 133, with 24 shares holding on to the last levels.

The most active list was topped by Arif Habib Securities, up Rs1.72 at Rs175.70 on 21m shares, followed by D G Khan Cement, lower by Rs1.31 at Rs79 on 14m shares, National Bank, off Rs4.61 at Rs173.10 on 10m shares, OGDC, lower by Rs1.82 at Rs128.90 on 9m shares, PTCL, easy by 24 paisa at Rs43.86 also on 9m shares, Arif Habib Bank, steady by 25 paisa at Rs20.75 on 7m shares, and Lucky Cement, sharply lower by Rs5.31 at Rs111.50 on 7m shares.

Other actives were led by NIB Bank, lower by 32 paisa at Rs13.25 on 10m shares, TRG Pakistan, easy by 44 paisa at Rs7.46 on 8m shares, and Nishat Mills, up Rs3.63 at Rs97.50 on 7m shares.

FORWARD COUNTER: National Bank came in for active profit-selling and led the list of actives, lower by Rs3.55 at Rs176 on 9m shares, followed by MCB Bank, up by Rs1.13 at Rs299.90 on 7m shares and Arif Habib Securities, steady by Rs1.18 at Rs176.90 on 6m shares.

Lucky Cement followed them, sharply lower by Rs4.71 at Rs113.10 on 4m shares, and D G Khan Cement, lower by Rs1.77 at Rs79.50 also on 4m shares.

DEFAULTER COs: Norrie Textiles again led the list of actives, off 29 paisa at 2.45 on 3.669m shares followed by Zeal Pak Cement this counter, lower by 45 paisa at Rs3.06 on 2.589m shares and Japan Power, easy by nine paisa at Rs6.85 on 0.480m shares. Al-Asif Sugar was traded higher by 11 paisa at Rs6.61 on 0.241m shares.