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RECORDER REPORT

KARACHI: The stock market recorded a small slide on Tuesday and traders termed the fall as technical downward correction. Market players booked profits while cautious activity by genuine investors trimmed the daily volume.

The KSE-100 index showed a fall of 12.55 points to 1760.29 from 1772.84 of Monday. The volume amounted to 216.054 million shares as against 308.877 million shares of Monday. The market capitalisation moved down to Rs 449.546 billion from Rs 452.505 billion of Monday.

The index recorded a fall of 12 points, but all the investment and trading stocks fought against the wild cries of bears. PTCL, Admajee Insurance and Dhan Fiber were nearly unchanged from their overnight levels while a few less active stocks denoted sharp gains like FFC Jordan and Dewan Salman Fibers.

The traders believed that the technical downward correction was a healthier portent for the bourse and the index might see some more pruning. However, as the inherent sentiment was quite strong, the market might show some improvement on the back of half yearly results of PTCL which are expected on February 3, 2000.

Analysts and traders estimated that the profit of the company might range between Rs 6 billion to Rs 8 billion. The company during the last fiscal year had earned a profit of nearly Rs 17.5 billion.

Mohammad Zubair Ellahi of KAB Securities said that the stability in programmed speculative was protecting the market from major decline otherwise trimming in the second tiers in an already overbought market suggested squaring of long positions.

He added that the cracks in individual stock prices and unnatural behaviour in others suggested swift landing ahead. The positive factor that might change the tempo was the on going progress on IPP's issue. The broader term outlook was still positive but it was advisable to reduce exposure.

Hubco maintained its rising streak and staged an increase of 20 paisa. The board of directors of the company is likely to meet on February 8, to decide the future strategy and how to resolve the tariff dispute with the government. Market men hoped that the matter would be resolved soon as the government had negotiated fresh tariff structure with 10 independent power producers.

Hubco on a trading of 76.76 million shares gained 20 paisa to Rs 28.75, PTCL on a business of 63.103 million shares remained unchanged at Rs 29.65, ICI on a volume of 23.366 million shares closed at Rs 13.00, lower by 40 paisa, Fauji recorded a decline of Rs 1.05 to Rs 65.05 as nearly 10.742 million shares changed hands and FFC Jordan on a turnover of 8.062 million shares closed at Rs 13.20, higher by five paisa.