950816

KERB WATCH

Market anchored

at 1800 points

J.M.J

KARACHI: The market seems to be anchored at the 1800 index. The pundits predict a predominant market in the near future but with the current Karachi situation and the general macroeconomic situation of the country, it looks to be a difficult preposition. The fact is that there are ready buyers and selling is being absorbed at the lower levels.

The GDR rates could not be confirmed due to a break in our international communication but the kerb was pretty active compared to the other days.

Pakistan Telecommunication with some accord between the authorities and Morgan Grenfel seems to be attractive at the prevalent rates and can further improve. There were buyers at Rs 35.40.

Hubco Power once again propped up with a good combination of jobbers and investors. The kerb was abound with buyers at Rs 22.50. This energy sector scrip can still jack up as the foreign fund managers are interested in the scrip due to its good scrip liquidity.

Metropolitan Life Insurance with a paid up capital of Rs 60 million shot to Rs 20 from Rs 14. It has been declared SPOT on Rs 17.50 but there were buyers in the kerb at Rs 20.50. One wonders if the strict rules adopted towards Alico would be adopted in this case to keep away short sellers. It would be wise if the public refrains from entering into any kind of position in this scrip.

Faysal Bank was weak at Rs 31.90 and very much directionless, some institutions did enter to book profits. A higher rate looks unlikely due to public's over-bought position.

The rates for the other kerb scrips were somewhat unchanged due to lack of interest. The only recent new entry KASB premier fund was abuzz with buyers at Rs 12.75.

Readers should be selective of their investments and get themselves involved only in a handful of items.