950821

Weak jobbers

create panic

J M J

KARACHI: The weak jobbers were offloading at such rapid pace that panic engulfed the market and the genuine buyers joined to sell and take the advantage of the declining trend.

The positive aspect of this bearish trend was that the badla rates went down considerably and got pegged at 2 percent monthly. Badla rates for the other active issues were as follows:

PTC: 14 paisa

Faysal Bank: 14 paisa

Dewan Salman: 25 paisa (ulta)

Hubco Power: 10 paisa

Dhan Fibre: 6 paisa

The GDR rates for PTC were US$106 and US$110. Hubco Power was being quoted at US$17 and US$17.50. Hence, both the scrips slided in the kerb to Rs. 34.75 and Rs. 21.90 respectively.

TriPak Film, TeleCard and Elahi Power are suffering from the change in clearing dates introduced by the CLA authorities. The members and the general public are not aware or accustomed to such workings. Once it starts and the public gets the hang of it, the new method's teething problems will get over soon. The rates quoted in the keerb were: Tri Pak Rs. 22, TeleCard Rs. 48 and Elahi Power Rs. 16.50.

Elahi Power is a Lahre item and one of their analysts is positive that the scrip is underrated, in view of the other power scrips.

S. G. Power further slided to Rs. 24 sellers. This downtrend was in parallel to the overall market condition.

EFU was down to Rs. 31 sellers. Metro Life Insurance caused damaged to all who had built up positions in a wild upward trend. In the kerb there were sellers at Rs. 12, its a big jolt from Rs. 25 in a week's time.

The main reason attributed is that fresh subscriptions have reduced the liquidity of the investors. Secondly the badla rates were also not viable. Jobbers have caused harm to their profits. Lastly, some news of violence has also depressed the market further.