950827

Prices fall like nine pins

RECORDER REPORT

KARACHI: Minimal participation of the leading brokerage houses and financial institutions dragged the whole stock market into the red column on Sunday. Prices fell like nine pins as profit selling erupted from all quarters.

"As bears went berserk on the week's opening session, nearly every leading investors took a back seat and allowed prices to tumble to new lows," said a leading research analyst.

Hasan Davar, manager, Capital Market Operations of First Capital Securities Corporation Limited, said that the market witnessed the full fury of selling upon opening after two days of strikes in Karachi and in the midst of a nationwide traders strike. The falling trend set in last week, when the market fell by over 50 points as weakholders and jittery investors sold off their long positions after having paid heavy carry-over charges in expectation of the market rising further.

"The downward correction that had become imminent has finally happened with an approximately 100 point drop over the last four working days and technical recovery is possibly in the making", Davar said.

During the early hours of trading on Sunday, the market was showing a mixed trend but on the news of the killing of a Pakistani employee of the US Drug Enforcement Agency in the city the selling pressure intensified and the index plunged by 2.16 percent or 39.01 points. The index closed at 1758. 12 as against 1797.13 of last Tuesday. The major losers were Adamjee Insurance and Lever Brothers (Rs 8 each), Brooke Bond (Rs 7), Cyanamid Pak (Rs 5), MCB and Dandot Cement, (Rs 3.50 each), Engro Chemical (Rs 3), Cherat Cement (Rs 2.50), Genertek, PSO, Nishat Tek, Pak Elektron, Fidelity Bank, Grays of Cambridge and Dawood Hercules (Rs 2 each).

Mohammad Zubair Ellahi, of Kausar Abbas Bhayani, said that the current bearish spell may not continue for long. The prices seem attractive with more upside potential than downside. So this downward adjustment would further strengthen the base. "Political factors weighed heavily on the trading as despite MQM-government talks on the cards, there was no abatement in killings in the city. The house to house search in some localities and arrest of youths too have given rise to serious apprehensions and so buyers adopted a cautious approach. Total activity was around 11.620 million shares as against 10.541 million shares of Tuesday last. Financial institutions and a few individuals made deals in PTC, Faysal Bank, Dewan Salman, Hub Power, Metro Life Insurance, Dandot Cement, Dhan Fibres, KASB Premier Fund, Honda Atlas Cars, ICI/Pak, Shakarganj Sugar, Dawood Leasing and Cherat Cement.

In a market which was looking attractive and ready for a bull run adverse political situation forces the investors to rearrange their holdings and almost all the stocks drifted down on a broad front. At the end, out of 338 scrips, 233 landed in the minus zone as against 50 gainers while 5.5 issues remained unchanged. Hub Power on total business of 2.144 million shares, registered a fall of 40 paisa and finished at Rs. 21.50. Minus signs dominated the counter and the highest loser was Tri-Star Power (Rs 2.75) followed by Sui Southern Gas (Rs 2.60) while only Haroon Oil posted a fresh gain of one rupee and ended at Rs 47.

PTC on a volume of 1.925 million shares, showed a fall of 35 paisa to Rs 34.60. PIAC registered a fresh loss of 80 paisa and ended at Rs,12. PNSC remained unchanged at Rs. 7 and Tri-Star Shipping recorded a sharp decline of one rupee and finished at Rs. 10.50. Faysal Bank on total transactions of 1.821 million shares, suffered a loss of Rs. 1.10 to close at Rs. 28.90. Only Meteropolitan Bank was on the plus path with a gain of 25 paisa whereas all the issues showed negative changes. Javed Omar Vohara lost Rs. 4, and MCB Rs. 3.50 while the remaining scrips showed losses in the range of 60 paisa to Rs. 2.50. Dhan Fiber on a volume of 1.546 million shares showed a decline of 80 paisa and ended at Rs. 10.90. Losers dominated the trading under the lead of National Fibers which went down to Rs. 30 from Rs. 34.75 and Dewan Salman lost Rs. 1.75 and ended at Rs. 105.25. Burshane Pak after earning Rs. 33.073 million for the year ended June 30, 1995 declared a final dividend of 50 percent, while Orix Leasing declared a 35 percent divident for the year ended June 30, 1995.

BOND SECTION: FEBC remained unchanged at Rs. 104.20.

BOARD MEETINGS

Confidence Mutual Fund 28-8-95

Pak Services 28-8-95

Diamond Industries 29-8-95

Orient Insurance 30-8-95

EFU General Insurance 30-8-95

Adamjee Insurance 31-8-95

Regal Ceramics 31-8-95