June 10, 2008	Tuesday	Jamadi-us-Sani 05, 1429

KARACHI, June 9: Stocks on Monday resumed trading on a higher note on active follow-up support but failed to sustain the early run-up on near-panic selling triggered by fears of violence linked to lawyers long march on Tuesday after government’s failure to restore the superior judiciary within their deadline and renewed political tensions.

After opening 87 points higher, the KSE 100-share index plunged by 226.33 points or 1.72 per cent at 12,908.23 as compared to 13,134.56 at the last weekend, wiping out Rs67 billion from the market capital at 3,980.00 billion on hasty selling.

But the free-float 30-share index received a massive battering off 419.23 points or 2.71 per cent at 15,030.33.

Most of the leading shares, including heavy weights such as MCB Bank, National Bank, Pakistan Petroleum, Attock Refinery reacted sharply lower from their recent highs, some of them even facing lower locks.

The current reversal is largely attributed to developing political scenario but as far as the news from the budget is concerned they are positive after the exemption on capital gains tax for another two years, Analyst Ahsan Mehanti says.

“The renewed political tension followed by conflicting statements by the leaders about the status of the presidency was also a bearish market factor leading to political uncertainties,” said a leading analyst Hasnain Asghar Ali.

But what seems to have aggravated the political tension was president’s talk to some senior journalists and his veiled threat to react if his powers were curtailed by the parliament, he said.

Budget uncertainties are there in the backdrop of tax relief and new corporate taxes but reported Saudi assurance to the prime minister in a recent meeting to supply oil on deferred payments will certainly relieve pressure on the fiscal measures on some counters, analyst Faisal A Rajabali hopes.

Although minus signs dominated the list some of the shares managed to finish sharply higher under the lead of AKD Capital and EFU General Insurance, up by Rs56.69 and Rs17.86, respectively.

Other leading gainers were led by Mitchells Farms, Shell Gas, Zulfiqar Industries, EFU Life, and Fazal Textiles, up by Rs6.42 to Rs14. Some others rose modestly.

Siemens Pakistan and Unilever Pakistan fell by Rs78 and Rs60, respectively, followed by National Bank, ICI Pakistan, Tri-Pack Films, Packages, Sanofi-Aventis, Dawood Hercules, Attock Refinery, Adamjee Insurance, MCB Bank and JS & Co, which fell by Rs8.54 to Rs28.95.

Trading volume fell to a modest proportion to 122m shares as leading players kept to the sidelines awaiting the outcome of long march. Losers held a strong lead over the gainers at 215 to 81, with 26 shares holding on to the last levels.

D.G. Khan Cement topped the list of actives, off Rs3.98 at Rs75.82 on 9m shares followed by Nishat Mills, easy by 10 paisa at Rs100.50 also on 9m shares, Arif Habib Securities, off Rs4.40 at Rs169.80 on 7m shares, Pakistan Petroleum, lower by Rs1.54 at Rs265.96 on 4m shares, Attock Refinery, sharply lower by Rs13.82 at Rs262.68 on 3m shares and WorldCall Telecom, lower by 44 paisa at Rs15.49 on 5m shares.

Other actives were led by Invest Mutual Fund, steady by six paisa at Rs2.86 on 4m shares, Sitara Peroxide, firm by 16 paisa at Rs56.16 on4m shares, and NIB Bank, lower by 60 paisa at Rs12.90 on 3m shares.

FORWARD COUNTER: MCB Bank came in for heavy selling on the cleared list and was marked by Rs15.36 at Rs291.89 on 5m shares followed by Sitara Peroxide, steady by 11 paisa at Rs57 also on 4m shares, and D.G. Khan Cement, Rs4.04 at Rs76.76 on 4m shares.

National Bank followed them, off Rs8.70 at Rs166 on 3m shares and Nishat Mills, lower 50 paisa at Rs100 also on 3m shares.

DEFAULTER COMPANIES: The active list on this counter was led by Norrie Textiles, which came in for active selling and fell by eight paisa at Rs2.21 on 1.403m shares followed by Zeal Pak Cement, easy by 10 paisa at Rs2.99 on 0.519m shares, National Asset Leasing, lower by two paisa at Rs0.84 on 414m shares and Crescent Standard Modaraba, easy by 10 paisa at Rs2.20 on 0.106m shares.