January 26, 2002	Saturday	Ziqa’ad 11, 1422

KARACHI, Jan 25: After a lower start on selling prompted by reports of Agni-1 test-fire by India, stocks ended the weekend session on a bullish note, signalling that the current bull-run could be sustained. The KSE index added another 17 points to the overnight gain.

“It was remarkable performance at the weekend session in the backdrop of addition of new element to the already high-pitch tension between the two neighbours,” stock analyst said, adding “the timing is important as it came at a time when diplomatic efforts are on to defuse the border tension”.

But the economic fundamentals are so strong that investors are not inclined to miss the rising market and reports of presence of foreign fund buying has reinforced the perception that war with India may not be imminent.

The opening was, however, a bit hesitant in the backdrop of reports of test-fire of Agni-1 capable of carrying nuclear warheads as the KSE 100-share index fell by six points. But investors were back in the rings after having digested the negative impact of the Indian test-fire on the ground that war may not be imminent despite tension on the borders.

It finally ended at 1,526.77 as compared to 1,510.02 a day earlier, up 16.75 points or 1.11 per cent adding another Rs3.385 billion to the market capitalization at Rs347.754 billion.

Barring PSO whose board meeting is due on Jan 30, which remained under pressure, all the leading blue chips as well as second-liners ended with fresh good gains on active follow-up support. PSO fell sharply lower on selling prompted by market talk of lower earnings owing to fall in selling prices of petroleum products.

Hub-Power again carried the day on strong dividend-related investment buying both by the local and the foreign and maintained its upward trend amid massive volume.

“In the given financial scenario and the sustained inflow of foreign investment, only fools could miss the opportunity to have Hubco shares at the prevailing rates,” stock analysts said, adding “both its around Rs9.00 per share is an attractive bait for any prospective investor”.

The market could pass through technical corrections here and there, but where the current run-up will stop is difficult to predict at this stage, they said, adding “the broad-based recovery could further add to the current buying euphoria”.

Plus signs were strewn all over the list, Wyeth Pakistan, which has started to recover as did it fell by about Rs100 last month and posted a fresh rise of Rs15.

Pakistan Oilfields also attracted fresh support in response to 80 per cent interim dividend and rose by Rs6.75. Noon Sugar, Cherat Papers, Century Paper, Shezan International, Third ICP, Engro Chemical and Sitara Energy were among the other leading gainers, rising by Rs1.40 to Rs2.50.

Losses on the other hand were again fractional in the absence of strong selling barring, Muslim Insurance, Bestway Cement, PSO, Otsuka