950822

Equities undergo

mild correction

on MQM strike call

RECORDER REPORT

KARACHI: Buyers adopted a cautious approach at the Karachi Stock Exchange on Tuesday as political factors weighed heavily against the market sentiment. As such values showed nominal downward changes but the demand for selected issues continued unabated.

The index during the early hour of trading showed a positive upward movement but the equities underwent a mild correction at mid-session as the rumour of strike call by the MQM gripped the market.

The sudden change in the trend of the market was generally described as a technical correction. Profit selling during the last three sessions has been partly explained as mobilization of funds for investment in new issues. More funds would be required for six issues - KASB Premier Fund, First Capital Mutual Fund, Tri-Pack Film, Telecard, Pakistan General Insurance Company and 25th ICP Mutual - which are expected to be listed within the next ten days. "When these scrips have been fully absorbed by the market, then it is expected that major players will opt for fresh buying", said a stock broker.

The market gurus were not pessimistic about the near-term, yet they cautioned the investors not to buy heavily if the law and order situation deteriorates.

The KSE index registered a small drop of 1.01 points to settle at 1797.13 as against 1798.14 points of Monday. The major losers were Dadabhoy Insurance (Rs. 5), Dewan Khalid Textile (Rs. 4.50), Pak Elektron (Rs. 3), Sana Industries, Dewan Salman, (Rs. 2.50 each), Pak Services, Prince Glass, Glaxo Laboratries, Philips, Mustehkam Cement, Maple Leaf, CITICORP, 1st Capital Securities and 9th ICP (Re. 1 each).

"Once again everyone's eyes are fixed upon the government and MQM talks and on the restoration of peace in this strife-torn city, the market may stage a rebound", said an analyst.

The research analyst said that improvement of nearly 80 points in the last one fortnight was not due to objective conditions, but was indiced by institutions and speculative forces, and thus has slim chances of being sustained. It is, therefore, recommended by a large group of players that the Corporate Law Authority or some government affiliated body should seek amendment in companies ordinance or flaot a 'stock support fund', so that market would not be dependent upon the local financial institutions only.

Total activity was around 10.553 million shares as against 11.699 million shares of Monday. Financial institutions and a few individuals made deals in PTC, Faysal Bank, Dewan Salman, Hub Power, Metro Life Insurance, Lucky Cement, Dhan Fibre, Indus Motors, Honda Atlas Cars, ICI/Pak, Shakarganj Sugar, Dawood Leasing and Cherat Cement.

Two new scrips were listed at the ready board on Tuesday 1st Capital Mutual Fund on a business of 5,000 shares lost 25 paisa and closed at Rs. 10.75 while KASB Premier Fund improved to Rs. 12.25 from Rs. 12 on a volume of 237,000 shares.

Absence of foreign buyers and genuine investors was felt badly, hence plus signs failed to take a lead over the minus ones and when the final bell was heard there were 177 losers as against 149 gainers while 85 issues remained unchanged.

Lucky Cement on total business of 940,500 shares lost yet another 30 paisa and finished at Rs. 21.70. Other scrips also suffered fresh setbacks in the vicinity of 25 paisa to Rs. 4.75. Dandot (R) went down to Rs. 8.50 from Rs. 13.25 while Dadabhoy Cement, Maple Leaf and Mustehkam Cement depicted a fall of Re. 1 each.

Faysal Bank on total transactions of 991,000 shares, stayed at its overnight close of Rs. 30. Platinum Bank on a brisk activity of 314,500 shares for the second consecutive day slid back to Rs. 12.05, indicating a net loss of 45 paisa. Eighteen minus signs were reported here as against eleven gainers. Losers were led by Secuirty Bank which depicted a fall of Rs. 2.40, while MCB showed a healthy improvement of Rs. 1.25.

PTC, on a volume of 940,500 shares, showed a small rise of 15 paisa to Rs. 34.95. PIAC registered a nominal fresh recovery of five paisa and ended at Rs. 12.80, PNSC was pushed down to Rs. 7 from Rs. 7.85 and Tri-Star Shipping posted a sharp rise of 40 and finished at Rs. 11.50.

Hub Power on total business of 885,500 shares, registered a fall of 40 paisa and finished at Rs. 21.90. Minus issues dominated the counter but loses were in fractions. The highest gainers were PSO with a fresh rise of Rs. 3 to Rs. 385 on a volume of 73,800 shares and Shell Pakistan which moved up to Rs. 221 from Rs. 220.

Dewan Salman on a volume of 676,600 shares showed a massive decrease of Rs. 2.50 and ended at Rs. 107. Mixed trend still persisted in this sector as there were six losers as against eight gainers. Liberty Mills lost Re. 1 and was quoted at Rs. 18.

Three companies finalized their accounts: Both Premier Tobacco and Wellcome Pak declared an interim dividend of 10 percent after earning Rs. 32.553 million and Rs. 27.702 million respectively for the year to end on December 31, 1995, while Shell Pak declared an interim dividend of around 25 percent on earnings amounting to Rs. 76.196 million.

BOND SECTION: FEBC remained unchanged at Rs. 104.20 .

BOARD MEETINGS

Orient Insurance 30-8-95

Sandoz Pak 23-8-95

Hoechst Pak 24-8-95

Reliance Insurance 27-8-95

Pak Guarantee Insurance 27-8-95

Diamond Industries 29-8-95

Adamjee Insurance 31-8-95