950820

Kerb watch

Strong underlying

sentiment

J.M.J.

KARACHI: The over purchased position has to be trimmed in the face of high badla rates and the jobbers have been booking losses for the past two weeks. They kept on purchasing to arrive at a better average and in the process were left with undesirable bellies.

The underlying sentiment is strong and, sooner or later, with the passage of time, the market will break the 1800 barrier. As soon as a profitable margin is hit, dealers are bound to book profits - this is an automatic phenomenon.

Pakistan Telecommunication was weak with sellers at Rs 35.10 at these levels and under the present situation the scrip could loose another 50 paisa. It is likely to attract a lot of buying.

Hubco Power tends to give way at Rs 23 as the majority of the dealers are of the opinion that it has increased in a very short span of time and a little correction is due. In the kerb, its rate was Rs 22.50.

Dewan Salman was under tremendous pressure with sellers at Rs 113. The institutional buying did not make an impact on the bears who were confident that this scrip would slide further.

Dhan fibre may still slide further amid rumours that production there may be further delayed. There were sellers at Rs 12.05 and hardly any buyers.

KASB premier fund at Rs 13 sellers was easily available, Tri Pak Film at Rs 25 and TeleCard at Rs 52 indicated that the forward scrips have received a jolt and they have lost some steam.

There were no buyers for S. G. GAS at Rs 28.50 and this scrip, over the week-end had proved to be a favoured item. Monday would be the last day of the clearing and the scrips may see a further setback as the majority jobbers are prepared to book losses and avoid the badla. If followed, it would be a smart move on their part.