KARACHI, Jan 2: Stocks on Wednesday extended the previous run-up but leading shares finished with clipped gains owing to late profit-taking, at the inflated levels. The index rose by another 8.67 points.

Although the broader market performed well, bulk of the support remained confined to Hub-Power and PTCL as their attractively lower levels ensure an appreciable capital gains in the weeks to come.

“The management of Hubco has the will and the financial resources after having utilized full power generation capacity to declare any amount of dividend as currently being rumoured in the market,” says a leading member of the KSE. “The current boost in share value from the recent lows is tinged with investor perception.”

The early run-up was also attributed to lifting of ban on short selling on the forward counter, which in a way will give a leverage and a sort of hedge to brokers to cover their possible losses in the ready section.

After early rising sharply on strong extended buying in the pivotals, the KSE 100-share index finally finished modestly higher by 8.67 points at 1,330.74 as compared to 1,322.07 a day earlier, reflecting the strength of leading base shares including PTCL and Hub-Power.

“The market is expected to behave orderly until the final decisions at the SAARC meeting are known,” stock analysts at the W.E. Financials say. “Much will depend on the outcome of Musharraf-Vajpayee meeting if they chose to ease the prevailing tension on the border.”

Other leading analysts at Aziz Fidahusein & Co and AHRA also hold the same view saying: “the market has a big stake in SAARC meeting and its positive outcome addressing the current problem of credibility between Pakistan and India.

“The important thing was that a selected group of general investors was back in the market on the perception that the goal of peace between the two neighbours now may not be elusive,” stock analysts at the Moosani Securities said.

President’s stopover in Beijing on his way to Nepal to attend SAARC meeting and exchange of nuclear information between Pakistan and India also worked in favour of the market as it leads to normalization of relations.

Although all the leading blue chips ended with fresh gains, late selling in some of them allowed them to finish off the day’s best bids.

Plus signs again dominated the list, major gainers being National Foods, Nestle MilkPak, Essa Cement, Bestway Cement, Gatron Industries, Habib Insurance, Faisal Spinning and Crescent Textiles, which posted gains ranging from Rs.1.20 to Rs.5.

Losers were led by Shahmurad Sugar, Sally Textiles, 11th ICP and Attock Refinery, which fell by 90 paisa to Rs.3, but the largest decline of Rs.7.80 was noted in Shell Pakistan on renewed selling prompted by fears of fall in earnings owing to lower oil prices.

Trading volume was maintained above the 100m share mark thanks to active two-way activity in Hub-Power and PTCL, which together accounted for 70 per cent of the total.

Hub-Power again came in for active support on rumours of interim dividend, up 25 paisa at Rs.16.95 on 37m shares, followed by PTCL, also up by the same amount at Rs.14.80 on 31m shares, FFC-Jordan Fertiliser, higher 30 paisa at Rs.3.90 on 7m shares, ICI Pakistan, up 40 paisa at Rs.38.30 on 6m shares and PSO, lower 60 paisa at Rs.95 on 5m shares.

NATIONAL BANK: It finished with a gain of 10 paisa at Rs.12.30 after hitting the day’s lowest and highest at Rs.12.25 and 12.75 on 0.440m shares.