950820

Profit-taking pulls

down KSE index

RECORDER REPORT

KARACHI: A technical correction was witnessed on the week's opening session at the Karachi Stock Exchange with the unloading by major players in an effort to generate funds for investment in the forthcoming issues.

Four attractive scrips, EFU Life Assurance, SGS Power, Sitara Energy and Kohinoor Genertech, are in the pipeline, and offered to shares worth Rs 145 million are to be general public.

Asghar A. Merchant, stock analyst at Khadim Ali Shah Bukhari Ltd., said that the positive sentiment prevailing in the market for the past few days took a breather on Sunday as investors, wary of the signs of violence in the city during the weekend, rushed to book profits. Although at no point it could be classified as panic selling, the investors evidently were not inclined to wait for further appreciation in values and found it more feasible to book whatever gains were available.

He said trading activity was also low as most investors found it more prudent to wait for the time being and make their investment decisions in the light of the latest developments on the political front. Total business was around 10.982 million shares as against 12.175 million shares of Thursday last. Financial institutions and a few individuals made some good deals in Network Leasing, Kohinoor Textile, ICI, Engro Chemical, D.G. Khan Cement, Maple Leaf Cement, Security Leasiing, Pak Synthetics, PTC, Hub Power, Faysal Bank, Dewan Salman, Dhan Fibre, Metro Life Insurance and Lucky Cement.

Asghar said that the underlying sentiment seems to be titled towards the long side. But market is expected to take breathers to make quick money.

The coming weeks should see release of half-yearly of banks and synthetics, as well as year-end results of cement companies.

Equities generally swing in a narrow band during the session and the difference between the plus and minus ones was quite small. Nearly 438 issues were called at the ready board, of wich 183 were gainers as against 170 losers while 85 remained unchanged.

"Although the underlying sentiment remains bullish, profit-taking emerged in patches which will enable the market to adjust for new higher levels", said an analyst.

He said foreign and domestic investors continued their chase of selected issues with the chances of resumption of talks between the government and MQM parleys expect a positive solution and the market may surge to new highs during the next few weeks.

The KSE index failed to sustain its overnight gain and registered a decline of 20.77 points to settle at 1829.45 as against 1850.22 of Thursday. The major losers were EFU Insurance (Rs 7), United Insurance (Rs 5), CITICORP, Premier Insurance, Nishat Mills, PSO and Sui Southern Gas (Rs 1.50 each), Packages, Engro Chemical, Boots Pharma, Attock Refinery, Rupali Polyester, Maple Leaf and Al-Faysal Bank (Re 1 each).

PTC on a volume of 1.175 million shares showed a decline of 45 paisas and ended at Rs 35.05. PIAC registered a drop of 75 paisas to Rs 14.25, PNSC climbed up to Rs 7.75 from Rs 7.50 and Tri-Star Shipping denoted a paltry rise of 30 paisas and finished at Rs 11.90.

Faysal Bank claimed second rank and on a total business of 1.130 million shares, suffered a fresh setback of 75 paisas, to close at Rs 31. Fourth position went to Platinum Bank, which on a volume of 750,500 shares maintained its forward thrust and settled at Rs 13.10, indicating a net rise of 65 paisas. The ratio of gainers and losers in this sector worked out to be 2 is to 1. Among major losers, CITICORP lost Rs 1.50, Fiedlity Bank Rs 1.25 and MCB Rs 1.15, while Crescent Bank posted a fresh rise of Rs 1.75.

Hub Power on a business of 1.125 million shares registered a fall of 20 paisas and finished at Rs 22.80. Minus issues outnumbered the plus ones here. Sui Southern Gas and PSO depicted a fall of Rs 1.50 each on turnover of 10,400 and 23,500 shares respectively. Only Burshane (Pak) gained Re 1 and finished at Rs 141.

At the fifth rung of the ladder, about 736,000 shares of Lucky Cement changed hands and faced a sharp decline of Re 1 and ended at Rs 23. The major loser was Maple Leaf Cement, down by Re 1, while Garibwal Cement posted a fresh rise of Re 1 and finished at Rs 103 on a business of 1,000 shares.

Three companies finalized their accounts of which, Indus Dyeing skipped payout after earning Rs 23.898 million, while KSAB Pumps declared an interim dividend of 10 percent and Johnson and Philips after earning Rs 8.861 million declared announcement of a 10 percent dividend for the period ended on March 31, 1995.

BOND SECTION: FEBC remained unchanged at Rs 104.

BOARD MEETINGS:

ICI PAK 17-8-95.

Pakistan Slag Cement 17-8-95.