KARACHI, Nov 16: Stocks continued to climb at the Karachi stock market, where the KSE-100 index gained another 9.11 points to close at 1,380.71 points on Friday.

After a day of low volumes on Thursday, the market was back to brisk trading on Friday, suggesting that aside from day traders and jobbers, institutional investors had also entered the rings to pick up choice scrips. Most pivotal, including PTCL and Hubco, continued to press forward, though Fauji Fertiliser ended flat on market rumours that the November 20 board meeting regarding privatization of Pak Saudi Fertilizer had been called off and the third interim dividend from the company could now be expected in third week of December.

“Market has found stability at these levels on gradual buying from key institutions as well as individual investors”, analysts at Global Securities say, adding that good valuations in blue chip stocks has provided opportunity for long-term investment. Taurus Securities stated that the market optimism was attributable partly to a flurry of good corporate results announcements. Key market heavy weights like PTCL had announced strong results and lately the Sui twins had surprised investors with dividend announcements after nine blank years.

The other major reason that had buoyed sentiments at the market enabling it to breach the 1,375 key level on Friday, was of course the expression of support by the West to Pakistan for its stand on the current regional situation. In this regard the positive piece of news for the day was the signing of agreement with Washington for $600 million budgetary support as part of the $1 billion aid package for the country.

The mounting of Pakistan’s liquid foreign exchange reserves to $3.62 billion as of November 10 and the reduction in prices of all petroleum products, including the HSD and Motor Gasoline, were also encouraging to investors.

In the heat of the moment, not much notice was taken of the World Bank’s forecast of Pakistan’s GDP growth to just 3 per cent for the current year and Rs6.6 billion shortfall in revenue receipts for the first four months (July-October) of the current year; actual collections being Rs110.7 billion against the target of Rs117.3 billion.

But for all that, many analysts are hinting at resistance once the index touches the 1400 level, albeit some stock traders, including those at First Capital suggest the downside could be limited. “Technical indicators i.e. Momentum and RSI are showing positive trend”, First Capital said on Friday morning.

Some profit-taking was witnessed earlier in the day by weak holders on Friday, ahead of the two-day holiday and also due to the advent of the Holy month of Ramazan from Sunday.

Volume of business on Friday hit 122 million shares, up from 98 million shares a day earlier. Among the 174 total actives; the ratio of plus to minus was 2:1.

The pharmaceutical firm, Wyeth Pakistan, posted the day’s biggest gain of Rs45 with the stock closing at Rs295. It was followed by Bhanero Textile up Rs5 to Rs65. Among the largest losers for the day were Colgate Pakistan, down Rs4.90 to Rs93.60 and Shell Pakistan lower by Rs3.90 to Rs180.10.

Hub Power Company gained another 45 paisa to close at Rs19.60 with the largest volume of 46.259 million shares. PTCL was the second most traded scrip, posting 20 paisa gain to end the day at Rs18.10 on 30.945 million shares. Sui Northern was down 5 paisa to Rs11.70 on 8.659 million shares, the stock shedding a bit of the gains made earlier on distribution of dividend. ICI posted an increase of Rs1.45 to Rs47.25 on 8.112 million shares. Fauji Fertiliser saw trading in 4.351 million shares, which finished at the last close of Rs41.40. MCB was down 10 paisa to Rs23.80 on a business in 2.949 million shares. Nishat Mills was up 10 paisa to Rs16.60 on 2.739 million shares; D.G. Khan Cement gained 60 paisa to Rs6.35 on 2.725 million shares.

FUTURE CONTRACTS: On the Futures counter nine scrip came up for trading with 6 in the plus and 3 in minus. Hub Power was the volume leader again with 1.770 million shares finishing up 45 paisa to Rs19.70. PTCL gained 20 paisa to close at Rs18.15 with business in 0.779 million shares; Engro Chemicals closed flat at Rs55.80 with 0.083 million shares; Sui Northern Gas also closed unchanged at Rs11.80 on 0.063 million shares and the oil marketing company, PSO, was up 25 paisa to Rs93.25 on 0.059 million shares.