November 16, 2001	Friday	Shaba'an 29, 1422

KARACHI, Nov 15: The stock market on Thursday consolidated the gains with another 2 per cent (20.50 points) rise in the KSE-100 index, closing at 1371.60 points.

Some stock strategists continued to advise caution, but many others believed that the developments on the Afghan front during the week had enabled the market to shed its despondency.

Believing that the worst may be behind us, the bulls had entered the market to lap up stocks, now trading at attractive earnings ratios. The optimists pointed out that having breached the resistance level of 1350, the index had quickly climbed on to head to face the next frontier at 1375 points.

Market was said to have taken heart from the reports that IMF’s executive board was to meet in Washington on December 5-6 to discuss and approve Pakistan’s estimated $3.2 billion financing gap for the current financial year. But stock traders who thought that discretion was the better part of valour, pointed out that unless a semblance of stability returned to the neighbouring Afghanistan, it would be churlish to think that Pakistan’s economy was out of the woods. They argued that while the loss to exports was for real, much of what was coming from the West including America was promises. Washington had earlier approved $600 million cash grant but so far nothing had come through, the cynics argued.

“Bulls continued to be active throughout the day in the market,” said analysts at stock brokerage Moosani Securities. They said that the start of the day gave opportunity to investors to book profits and accumulation was seen at lower levels in all pivotal stocks.” Mohammed Sohail, head of research, at Invest Cap observed that much of the trading activity was generated by day traders and stock brokers, with institutional investors opting to sit on the fence.

All large volume scrips posted gains on Thursday, but the overall business volume shrank sharply to 98 million shares on Thursday, from 140 million shares on Wednesday and 122 million shares the day before. With the second of the Sui twins—Sui Southern also declaring a cash dividend on Thursday after nine blank years— both came in for active support. Sui Southern came up with cash announcement of 15 per cent. It saw trading in 1.134 million shares, up 65 paisa to close at Rs12.35. Earlier on Wednesday, Sui Northern had declared cash dividend at 17 per cent. But since the announcement had come after the close of normal trading, the impact came on Thursday with the scrip gaining 70 paisa to close at Rs11.75 with the third largest volume for the day at 17.865 million shares. In the lead of the two gas utilities, all energy shares also rose including the refineries. Hub Power added another 35 paisa to close at Rs19.15 with the largest volume of 24.361m shares; the Independent Power Utility having continued to recover on the expectations that the lenders’ approval for the final dividend was about to appear.

Lead gainers on Thursday were Shezan International, which jumped by Rs8 to close at Rs45 and Shell (Pakistan), increasing by Rs3 to Rs184.

Fazal Textile posted the largest loss of Rs3.50 for the day, closing at Rs67.50 and Siemens Engineering followed with a Rs2 loss to end at Rs142.

Following Hub Power, which topped the list of most actives, the PTCL saw trading in 22.826m shares, increasing by 30 paisa to finish at Rs17.90. Nishat Mills saw volume of 6.233m shares with the scrip gaining 30 paisa to close at Rs16.50 and a little over 5m shares were traded in MCB, which ended 90 paisa steady, at Rs23.90.

Other actives included ICI, firmer by Rs1.05 to Rs45.80 on 4.838m shares; Fauji Fertilizer up by Rs1.10 to Rs41.40 on 4.164m shares and Adamjee Insurance gaining Rs1.45 to Rs36.90 on 2.940m shares.

FUTURE CONTRACTS: On the futures counter, the largest volume of 1.208m shares was recorded in Hub Power, which ended 40 paisa up to Rs19.25. It was followed by 0.539m shares trading in the PTCL, which rose 25 paisa to close at Rs17.95. Sui Northern, higher 75 paisa to Rs11.80 on 0.228m shares; Engro up 50 paisa to Rs55.80 on 0.169m shares.

DEFAULTING COMPANIES: On the defaulters’ counters, three stocks came up for trading on Thursday. Noon Textiles was down 30 paisa to close at Rs 6.20 on 500 shares; Alif Textile easy 20 paisa to Rs4.05 on 500 shares and the construction company—Gammon Pakistan— rose 30 paisa on 2000 shares to close at Rs12.80.

DIVIDEND: National Leasing announced cash dividend at 10 per cent; Leather-Up proposed final cash dividend at 10 per cent; Pakistan Synthetics cash dividend at 17.50 per cent; Sigma Leasing dividend at 3.5 per cent and Atlas Battery dividend at 15 per cent—all for the year ended June 30, 2001.