950808

Be cautious of

automobiles!

J M J

KARACHI: The dollar jacked up to other currencies bringing a positive response by the investors, and the yen slipped to bring a big buying in the automobile sector.

This buying in this sector would be short lived as profit taking would surface in the near future. Investors have little hope as the automobile industry on paper does not justify a further rise. The investor has to be cautious.

The PTC GDR till filling this report did not show any change to its previous rate, accelerated the selling pressure, there were sellers at Rs 35.10 in the kerb, the stagnant agreement, on the part of the government and Morgan Grenfell and to some extent the high badla rate and the availability of other rewarding scrips has contributed to the lack lustrue prices performance of this scrip.

Hubco Power with a better GDR at US $15.38 and US$15.88 and the kerb rate at Rs 20.65 indicated that foreign buying could resurface in the near future.

Faysal Bank's in the kerb was down to Rs 32.05 sellers. This proved that too many weak jobbers were planning to mint big money, and as the price did not match their expectations, there were sellers at every downward price. This further indicated that short sellers were involved too in the sliding price. The bank's investment in the NIT units and tax concessions can boost its price in the time to come.

Dewan Salman's price rose due to the increase in the international rates in their product, and the company's performance owing to the expansion in their production.

TeleCard was stable at Rs 60.00 and TriPak Films at Rs 29.25 looks good but very uncertain in the future. Dhan Fibre was down to Rs 12.10, the scrip can still form a base at Rs 13.00 if the big buyers hold for a certain period and sell at higher rates, which looks very likely in the future.

One has to observe that buying has erupted generally and a fall in PTC does not make a difference to the market as before.