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RECORDER REPORT

KARACHI: Unconfirmed reports about the resignation of President Rafiq Tarar eroded over 50 percent gains made at the share market on Monday, which again cautioned the traders and investors that any development on political front might lead to some uncertainty.

The market ended with a gain of 23.47 points at 1772.84 but during the first half of the session, the KSE-100 index had been up by 50 points. The buying was across the board. Fresh deals in PTCL, Hubco, Fauji and Adamjee Insurance stole the show.

However, before the end of the session, the market received an unconfirmed report that President Rafiq Tarar might resign and Justice Sajjad Ali Shah could be tipped as the new president. The market players utilized this development and created a scare, offloading their holdings. Sudden flush of selling pressure panicked the small investors and weak holders, who in order to save themselves from huge losses also sold their shares on available prices.

The volume amounted to 308.877 million shares as against 258.881 million shares of Friday. The market capitalisation moved to Rs 452.505 billion from Rs 445,077 billion of Friday.

A leading trader said that the IPP's initiated strong bull run was keeping its tempo through the performance of high capitalisation individual stocks. The concentration of activity in a few stocks with declining volumes in second tiers and no resistance on individual slides, suggested realisation of gains on intra-day-rise.

He added that the long term outlook still appeared positive but exposure reduction around current levels seemed appropriate.

A dealer said that the market sentiment was quite bullish initially, where the bulls were eager to take fresh positions in the active as well as some blue chips stocks and the KSE index scored a significant rise in the first session.

Buying by the local institutions as well as the local investors also emerged and gave further boost to the overall sentiment. However, some selling pressure emerged in the second session from the profiteers, who were inclined to book profits. Hence, the index came down sharply in the end the market and closed with a net gain of 23.47 points.

The market was quite normal and no bad news reached there, which was quite a positive sign and provided further room for the bulls to establish fresh positions in the forthcoming sessions.Engro Chemicals which was one of the top gainers during the last couple of weeks saw a substantial decline. The share price plunged by Rs 8.00 to Rs 115.25 as the company did not declare any bonus as against the market's expectation of 15 to 20 percent bonus. The profits also fell 30 percent to Rs 1.047 billion in the year ended December 31, 1999 compared with a year ago.

Hubco on a trading of 116.325 million shares gained 75 paisa to Rs 28.55, PTCL on a business of 91.517 million shares moved up to Rs 29.65 from Rs 29.35, ICI on a volume of 32.540 million shares closed at Rs 13.40, higher by 25 paisa, Fauji rose by Rs 1.40 to Rs 66.10 as nearly 17.798 million shares changed hands and FFC Jordan on a turnover of 8.754 million shares closed at Rs 13.15, higher by 15 paisa.