KARACHI, Dec 5: Stocks on Wednesday showed an improved trend as leading shares came in for active support at the lower levels, but there was no matching selling from any quarter as was reflected by light trading.

The KSE 100-share index posted modest rise of 8.38 points at 1,374.13 as compared to 1,365.75 a day earlier as leading base shares including PTCL, Hubco and PSO ended higher.

The signs of recovery were visible on selected counter under the lead of leading energy shares, notably PSO and Shell Pakistan on reports of higher world prices and an optimism created by the quarterly meeting of the PTCL next Monday and market talk of an interim dividend.

Approval of $1.5bn under the Poverty Reduction and Growth Facility (PRGF) and new aid package from Germany were some of the other contributory aiding factors. The Paris Club meeting is scheduled for Dec 5.

The KSE 100-share index rose by 8.38 points at 1,374.13 as compared to 1,365.75 a day earlier as all the leading base shares including Hubco, PTCL and PSO recovered from the previous lows.

“The index is steadily inching to its targeted level of 1,400 points and most analysts predict it could stay well above this figure aided by the developing financial scenario boosted by inflow of foreign aid, higher forex reserves and strong rupee.”

But slowdown on export front could take its toll in the form of lower exports and in turn on the industrial productivity, they added.

According to KSE sources, PTCL board will meet next Monday to have an overview of the quarterly working results but analysts don’t think there could be any interim. It is a routine meeting and rumours about the interim on the pattern of Hubco are not correct, they added.

Dividend-related selective support was, however, evident on a number of counters but it was too feeble to give a clear direction for the market to follow.

Active short-covering in PTCL ahead of the meeting also generated a good bit of buying on other blue chip counters, pushing the market into the plus territory.

“Everyone is awaiting the advent of year-end buying, which may manifest itself after the eid holidays,” stock leading analysts said. “No one is inclined to take risk as anything could happen during the long eid holidays.”

Plus signs held a fair lead over the minus ones and leading gainers among them were Lever Brothers and other food shares, barring National Foods, and Bhanero Textiles, rising by Rs.4.50 to 4.90.

Other good gainers were led by Faisal Spinning, Kohinoor Raiwind, Din Textiles, Gatron Industries, Al-Ghazi Tractors, Mitchells Fruits and Murree Brewery, which rose by one rupee to Rs.1.20.

Losers were led by Attock Refinery, off Rs.3.25 followed by Sapphire Textiles, Atlas Battery, Siemens Pakistan, Aventis Pharma and National Food, which suffered decline ranging from Rs.1.50 to 2.05.

It was perhaps because of this factor that trading volume is shrinking each session and fell to 32m shares, although gainers extended the lead over the losers at 88 to 49, out of 183 actives.

PTCL was again actively traded, up 20 paisa at Rs.18.15 on 15m shares, followed by Nishat Mills, higher by Rs.1.05 at Rs.16.80 on 3m shares, PSO, up 55 paisa at Rs.101.30 also on 3m shares, Fauji Fertilizer, higher by 65 paisa at Rs.41.20 on 2m shares and Engro Chemical, firm by 20 paisa at Rs.56.50 on 1.16m shares.

Other actives were led by Hub-Power, up 20 paisa on 1.134m shares, MCB, steady by 25 paisa on 1.131m shares and ICI Pakistan, firm by 15 paisa on 0.602m shares.

NATIONAL BANK: On the provisionally listed counter, share of National Bank of Pakistan was marked down by five paisa at Rs.12.50 but the activity was relatively slow at 0.144m shares. It hit the highest and the lowest at Rs.12.65 and 12.40.