July 02, 2008	Wednesday	Jamadi-us-Sani 27, 1429

KARACHI, July 1: Stocks fell across-the-board on Tuesday on renewed selling triggered by massive increase in energy prices, but the one per cent lower cap on fresh fall saved the market from another major shakeout, analysts said.

Leading investors, however, again kept on the sidelines apparently to have an overview of the developing situation both on the political and economic fronts in the backdrop of hike in energy prices and to plan for future buying strategy.

The KSE 100-share shed another 67.50 points at 12,221.53 as compared to previous 12,289.03 points as most of the leading base shares fell further under the lead of MCB Bank, Pakistan Oilfields, Pakistan Petroleum and Attock Refinery. Its junior partner also fell by 95.85 points at 14,230.42.

The increase in petroleum and gas prices will significantly add to the production costs of the industrial sector having negative impact on stock trading in the coming weeks also.

A cash dividend at the rate of Rs6.50 per unit by the National Investment Trust for the financial year ended June 30, 2008 was on the higher side of the market expectations but it failed to evoke fresh interest owing to the absence of leading buyers and financial institutions.

“To buy or not to buy is a big question for which brokers have so far failed to find a right answer,” analyst Ahsan Mehanti said. “Everyone thinks it is criminal to miss the current attractive bait of lower levels but does not have the courage to bell the cat”.

But analyst Ashraf Zakaria said the ongoing operation in the tribal areas, increase in energy prices, lack of buying support and the steady outflow of huge funds are the negatives taking their daily toll.

A massive increase of 10 to 31 per cent in petroleum and gas prices, respectively, by the government further dampened the buying interest on the share market as leading investors kept on the sidelines having an overview of the negative impact on the corporate sector.

Barring oil marketing companies, notably PSO, Shell Pakistan and some others, which are the chief beneficiaries of the increase, textile, cement, chemicals and paper sectors will be hard hit by an upward revision of the tariff, analyst Hasnain Asghar Ali said.

Minus signs again dominated the list under the lead of JS & Co and Attock Petroleum, off by Rs5.30 and Rs4.32. Other falls were also fractional owing to the lower cap barring Habib Bank, Adamjee Insurance, MCB Bank, Pakistan Petroleum, Pakistan Oilfields, Dawood Hercules, Engro Chemical and Attock Petroleum, easy by Rs2.08 to Rs3.89.

Sapphire Fibres and National Foods managed to finish with gains of Rs24.05 and Rs15, respectively, followed by Crescent Textiles, Shell Pakistan, Sitara Chemicals, Gillette Pakistan, Diamond Industries, and Bhanero Textiles, which rose by Rs5 to Rs13.50.

Trading volume showed a modest rise at 47m shares from the previous 12m shares but losers held a strong lead over the gainers at 163 to 51, with 11 shares holding on to the last levels.

The OGDC topped the list of actives, fractionally higher by four paisa at Rs124.40 on 8m shares followed by Arif Habib Securities, lower by Rs1.08 at Rs160.40 on 7m shares, PSO, sharply higher by Rs11.55 at Rs428.79 on 3m shares, Attock Refinery, off Rs1.88 at Rs248 on 2m shares, MCB Bank, off Rs3.26 at Rs323.12 also on 2m shares and Pakistan Petroleum, off Rs2.54 at Rs243.55 on 2m shares.

D.G. Khan Cement followed them, lower by 67 paisa at Rs66.47 on 3m shares, Sui Northern Gas, up 58 paisa at Rs44.15 on 2m shares and the KESC, steady by three paisa at Rs5.50 also on 2m shares.

FORWARD COUNTER: Engro Polymer remained under pressure and was quoted lower by 57 paisa at Rs27.51 on 5m shares followed by KASB Securities, higher by Rs3.66 at Rs76.98 on 3m shares and OGDC, lower by 59 paisa at Rs125.75 on 1m shares.

PSO followed them, sharply higher in response to increase in petroleum prices, higher by Rs10.01 at Rs432.10 on 0.842m shares and Pakistan Petroleum, off Rs2.39 at Rs247.38 on 0.658m shares.

DEFAULTER COMPANIES: Unlike the previous sluggish session, stray activity was witnessed on this counter as some of the recent actives came in for modest covering purchases under the lead of Norrie Textiles, fractionally higher by three paisa at Rs2.12 on 0.794m shares.

Unity Modaraba followed it up by one paisa at Rs1 on 0.152m shares, while all others were modestly traded.